Portfolio Commentary

Portfolio Commentary for the Absolute Convertible Arbitrage Fund is provided on a quarterly basis and can be found below along with other “discussion” articles that are relevant to the Fund. Additional information can be found within the shareholder letters in the Annual and Semi-Annual Reports. If you are a financial adviser and would like to be added to our e-mail distribution list, contact us by e-mail.

Please note that this commentary provides a very detailed analysis of the Fund’s strategy. Some of this analysis may be difficult for the average investor to fully understand. It is presented here for those who may have an interest in such a discussion and as always, we encourage investors to discuss questions with their financial adviser.

“…As stated in our first quarter 2020 commentary, the pandemic had created credit conditions where the “return potential may have doubled in a very short time.” The stated boost in return expectations was based on much wider implied credit spreads as well as convertible prices trading multiple percentage points below fair value…
…We have always said that healthy convertible market supply and demand conditions, wider credit spreads and increased equity volatility, are the ideal ingredients for strong risk/reward returns ahead. Presently, the environment is providing us these ideal conditions.” [read all]