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