Ionic Capital Launches Convertible Arbitrage Fund

Multi-billion hedge fund manager Ionic Capital Management has launched a convertible arbitrage fund with $100 million under management.

HFMWeek, citing an investor document, says the Ionic Convertible Master Fund focuses on high-delta convertible bonds trading at discounts to listed equity volatility. The new fund is diversified across 20-40 positions, trading convertible debt, equity options and other securities and instruments that are convertible, exchangeable or equity-linked.

Fund portfolio managers Bart Baum, Adam Radosti and Daniel Stone are alumni of JP Morgan-owned Highbridge Capital where they worked together for almost 10 years until 2006.