Camden Leveraged Arbitrage
Camden’s Leveraged Arbitrage Strategy strives to produce long-term equity like returns with diminished volatility. The strategy also seeks to achieve a low correlation to both equity indices and interest rates. We have managed this strategy since 1993.
Camden strives to achieve the strategy’s investment goals by managing a diversified portfolio of primarily hedged arbitrage investments with an emphasis on hedged convertibles. We believe hedged convertibles seek to capture the mispricing between a company’s convertible security and its common stock.
Typical hedged convertible positions consist of a long position in a convertible paired with a short position in the appropriate common stock as well as an interest rate hedge. The short equity position serves to hedge the sensitivity of the convertible to changes in the equity price and to arbitrage discrepancies in the pricing of the two securities.
Camden seeks to take advantage of mispricings of credit risk, equity volatility and/or corporate events. We use both fundamental and quantitative analysis to screen for opportunities.
Typical balance sheet leverage for the Camden Leveraged Arbitrage Strategy is between 2.0 to 3.0 times.
Please refer to the Camden Leveraged Arbitrage Composite for historical performance.