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.

“…In the span of a month, we have seen our average convertible bond credit spreads double from approximately 450 over treasuries to about 900 over treasuries. In addition, the average cheapness of our portfolio has gone from about 1% undervalued to 4% undervalued. Therefore, our annualized return potential over the next few years may have doubled in a very short time. And again, our return potential does not rely on timing or gambling or forecasting market direction. It simply relies in large part to us doing our job and staying hedged, as always.” [read all]