Palisade Capital Launches Convertible Arbitrage Strategy

May 25 2007 | 11:23am ET

Fort Lee, N.J.-based Palisade Capital Management is banking on the return of volatility with its latest offering. The Palisade Master Fund, a convertible arbitrage strategy, launched this month with $8.5 million in initial equity.

The firm has been managing convertible arbitrage strategies for institutional investors in managed accounts for the past two years, and now wants to open the strategies to outside capital, according to Elliot Stiefel, a director at Palisade. “We have a convertible arb. team of five plus we leverage off our equity team so we think the infrastructure is in place to grow and bring in new investors,” said Stiefel.

Stiefel is bullish on the space. “We’re expecting a record year for new issuance in the U.S. and we’ve had a record March followed by a pretty strong April.”

“The best time to get into the strategy is when the volatility is low, not high, and the volatility is extremely low right now.”

The Palisade Master Fund charges 2% for management and 20% for performance, with a $1 million minimum investment requirement.

Martin Berman, a former senior managing director at Smith Barney, founded Palisade Capital in 1995. Palisade manages some $3 billion in total assets.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of