"Blood bath" hits funds


Market watchers declared March a "bloodbath" for convertible arbitrage hedge funds, a fact reflected in many indices. The widely-watched Goldman Sachs Convertible Arbitrage Hedge Fund Index fell 2% in March, its largest monthly decline ever. Poor fundamentals, including low levels of new issuance and low implied volatility levels, contributed to the strategy's ongoing slump. The Absolute Return convertible arbitrage median posted a 1.64% loss, a big number for the strategy. The Clinton Group's Riverside Convertible Fund posted a 3.98% loss in March, bringing its total 2005 losses down to 5.50%. Scott Creedon's Alta Partners Ltd. also suffered a