Converting out.(market condition for hedge funds)

Futures (Cedar Falls, Iowa), August, 2005 by Collins, Daniel P.

The June closure of convertible arbitrage hedge fund Marin Capital Partners, with its nearly $2 billion under management, appears to be just the tip of the iceberg for the troubled strategy. The Barclay Group estimates the strategy has lost more than 20% of its assets, to $52.53 billion under management from $66.1, in the first quarter.

Redemptions and drawdowns continued in the second quarter as the Barclay Map shows an average drop in money under management of $25.4 million for convertible arbitrage managers in the quarter ending in May and a year-to-date drop in performance of 6.81% through June.

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The U.S. Chamber of Commerce petitioned a Federal Appeals court for review of a final rule adopted by the Securities and...

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