Man GLG Convertible Arbitrage Alternative

Investment Objective

The Man GLG Convertible Arbitrage Alternative employs a discretionary, convertible bond arbitrage strategy seeking absolute returns throughout all market cycles focused on North America and Europe.

The value of an investment and the income from it can go down as well as up and investors may not get back the amount originally invested.

Latest Meeting Note

Meeting 22 Jun 2021

A US and Europe focused convertible arbitrage strategy managed by Gil Song, who has 16+ years of convertible bond arbitrage investing, having run internal convertible arbitrage books within Man GLG's flagship credit fund since 2017 and p... Read more

A US and Europe focused convertible arbitrage strategy managed by Gil Song, who has 16+ years of convertible bond arbitrage investing, having run internal convertible arbitrage books within Man GLG's flagship credit fund since 2017 and prior to that, was a convertible PM at Paloma Partners since 2006. In this current setup Gil is supported by 2 dedicated analysts and can call upon the resources of Man GLG's credit and convertible platform. The strategy is based around buying theoretically cheap convertibles and selling short the underling (with the reverse undertaken for shorts), with the team aiming to profit from the stock's volatility. The team mainly own convertibles hedged with the underlying stock in the balanced and higher delta stratum (c.75%), and the portfolio also has relatively conservative exposure and performance attribution from credit. The PM utilises macro overlay hedges against tail-type events with the hedging overlay dynamically scaled in anticipation of market conditions. Position sizing and risk scaling is a core component of portfolio construction, helping to ensure position diversification and plays an important first step in the risk management process. The overall portfolio typically consists for 40-60 arbitrage positions (the bulk long but c. 5-10 short), primarily across the technology, healthcare and consumer sectors.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2021 0.8 0.2 0.1 0.9 0.6 0.7 0.7 0.6 0.7 0.4 0.5 0.9 0.8
2020 0.0 0.9 0.5 0.5 0.3 0.0 0.0 0.5 0.0 0.4 0.9 0.6 0.1

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Close Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.