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Alternative Market Briefing

New convertible arb fund aims to do without old-school investing

Monday, June 10, 2024

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B. G., Opalesque Geneva for New Managers:

A new fund is revamping convertible arbitrage, one of the oldest hedge fund strategies, by adding a systematic layer to the common discretionary approach - where investment decisions are made at the portfolio manager's discretion.

Solken Convertible Arbitrage, a Luxembourg SICAV, launched in December 2022 and started live trading in February 2023. As of 12th April 2024, the strategy has produced a return of 9.8% with a 2% volatility.

It was developed by two managers with experience in trading and managing convertible bond portfolios: Alexis Martin, who used to work at MFM Mirante Fund Management and holds a PhD in Theoretical Physics, and Romain Cosandey, who worked at SquarePoint Capital and Jabre Capital Partners and holds MScs in Mathematics and Financial Engineering. The two partners have known each other for a number of years and have created the strategy within Solken Quantitative Research, of which they are co-founders. Then they joined DCM Systematic SA which takes care of the operational side. DCM is a FINMA-licensed manager based in Geneva, founded by two senior quants from Blu......................

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