Absolute Investment Advisers

The strategy is fundamentally credit- and spread-driven rather than a directional bet on low rates. When rates rise and growth stocks sell off, the convertible bond's fixed-income floor and coupon become more significant relative to the equity option. The firm also benefits from higher reinvestment rates on the cash leg of the arbitrage and from secondary-market dislocations when levered sellers unwind positions.

Co-founders James A. Swanson and Fabian Onetti are the key decision-makers. Swanson serves as Chief Investment Officer and has been the public face of the strategy, while Onetti is named as a partner. The firm operates with a concentrated investment team, meaning the principals are directly involved in portfolio construction and trade execution.

Yes. In addition to separately managed accounts, the firm has historically managed a mutual fund and a closed-end fund. The closed-end fund structure allows the firm to run less-liquid positions in smaller convertible issues, but it also introduces a layer of complexity around trading at premiums or discounts to net asset value.

The primary structural risk is a sustained period of low volatility alongside a freeze in primary convertible issuance, which compresses the supply of new arbitrage opportunities and narrows secondary-market spreads. Additionally, because the portfolio concentrates in sectors like technology and biotech, it can be disproportionately affected by regulatory shocks or a broad sell-off in growth equities that is too rapid to delta-hedge cleanly.