The management team, dedicated to convertible securities portfolios, began with three experienced individuals, now comprises five professionals, and has had no attrition.
The fund is 100% dedicated to convertible arbitrage with a portfolio management team that combines thirty-five years of experience in trading US convertible securities. We employ a versatile strategy that includes in-the-money/synthetic put trades, at/near-the-money trades, and cash-flow-oriented mandatory trades. We focus on the small and mid cap space of the convertibles market. We emphasize convertible coupon bonds (always more than 50% of the portfolio, usually more than 80%) to maintain positive carry and yield. We continually assess portfolio mix to optimise risk/reward, and use options-based models to invest in under-priced securities. Profits are generated from identifying undervalued securities, positive carry, credit improvement, delta/volatility trading and relative premium expansion.
Eric was Director of Convertible Arbitrage Accounts at Salomon Smith Barney, where from 1999 to 2002 he was responsible for major client accounts. From 1994 to 1999 as Institutional Trader, Convertible Securities, he made markets in all types of US convertible securities (coupon, zeros, preferreds, mandatories). As first Managing Director and then Co-Head of Sales, Convertible Securities at Bear Stearns from 1991 to 1994, he managed large institutional investor accounts and collaborated with the Equity Syndicate Department in pricing new convertible issues. At Smith Barney from 1989 to 1991 he was Assistant Trader, Convertible Securities engaged in market making and convertible arbitrage with institutional traders, after completing the Institutional Sales and Trading Training Program covering all fixed income and equity products. From 1986 to 1988 as a Trader at Continental Grain, he bought and sold cash grain commodities in Texas, Oklahoma, and Louisiana and hedged positions with grain futures.
<p> Mr. Hage was awarded an MBA in Finance & International Economics in 1989 by Columbia Business School and a BS in Agricultural Economics in 1986 by Cornell University, where he was President of Phi Delta Theta.</p>