Saturday, 26 July 2014
Last updated 9 hours ago
Jul 31 2008 | 11:07am ET
Weakness in financial names is taking its toll on convertible arbitrage hedge funds.
Preferred shares of financial services firms are were down 21% in the first half of July, contributing the suffering already felt by convertible-bond funds—down an average of 7.6% in the first half, according to Hedge Fund Research—this year.
New York-based Fore Research & Management, led by former TD Securities convertible arbitrage chief Matthew Li, saw its convertible-bond fund fall 12.4% through July 22, leaving it down 8% on the year, Bloomberg News reports. The $2.5 billion firm’s convertible-bond fund has averaged an 11% return since inception.
Other convertible-bond funds are doing no better. Westport, Conn.-based Lydian Asset Management’s Overseas Partners Fund is down about 10% through July 17, Bloomberg reports. London-based Ferox Capital Management’s flagship is down 12% through July 18.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…