Convertibles: Slow start to the year


Unlike many of their hedge fund competitors, convertible and equity arbitrage managers have turned in neither big losses nor big gains for the year so far. The Absolute Return Convertible & Equity Arbitrage Index gained a mere 0.09% in February to put the index up 0.34% for the year.

One of the worst-hit portfolios was Argent Classic Convertible Arbitrage Fund (Class B), which proved unable to turn around its sliding performance. After a loss of 11.26% in January, the fund slipped 25.26% in February to finish down a worrisome 33.68% for the two months. Zazove Convertible Securities has