Inflective Asset Management's hedged convertible strategy seeks to achieve returns by making a simultaneous purchase of a convertible security and short sale of its underlying common stock, thereby seeking to isolate mispriced elements within these two highly correlated securities.  These positions are not designed to capture the returns of a rising market and conversely they are not expected to decline in value as the markets fall.  Rather returns are realized as these positions move towards their fair valuation. 

Utilizing a fundamental value strategy, Inflective will seek to make investments in convertible securities that are theoretically cheap and to adjust the hedges based on internal analysis and valuation of the underlying common stock.  Benefits will be sought from the change in the price of the convertible security relative to the change in the price of the underlying common stock. 

Inflective will also seek to exploit the value of convertibles by identifying companies with a competitive advantage or disadvantage not yet realized in the marketplace.  Inflective builds its hedges to capture positive returns as this value is recognized by the market.  The fixed income characteristics of the convertible security and other relevant attributes will also be analyzed and considered in making an investment. 

Inflective will also seek to use a diverse set of hedging instruments to generate returns while limiting volatility and mitigating risk.  Overall, returns are expected to have a low correlation with traditional equity and fixed income investment strategies, providing additional diversification to a comprehensive wealth management strategy. 

Please contact us for more information regarding investment options with Inflective.

Disclaimer:  The strategy’s investment objective may be deemed speculative and no assurance can be given that the investment objective will be realized.

     1334 Parkview Avenue, Suite 310, Manhattan Beach, CA  90266.  Ph. (310)-545-2992