Performance

Arbitrage: 20 months of gains

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Convertible & Equity Arbitrage strategies continued their 20-month winning streak, finishing January with a median gain of 0.97%. No convertible or equity arbitrage funds in the Absolute Return database posted negative returns. Argent was one of the biggest winners, accounting for two of the top six performers. Class A shares of Classic Convertible Arbitrage Fund posted a 3.23% gain, while Class A shares of Classic Convertible Arbitrage Fund II LP rose 1.69%. Shawn Bergerson's Waterstone Market Neutral Fund (offshore) climbed roughly 4.11% in January. That's on top of the fund's roughly 16% net gain in 2006. Class A