MENU INVESTOR PORTAL EN FR INVESTMENT APPROACH We apply a multi-strategy investment approach which combines robust fundamental analysis with deep expertise across financial instruments. We operate across asset classes (equity, credit and volatility) and investments are rigorously screened to focus on events, catalysts and arbitrage opportunities. Combining deep analysis with strong risk management and trading expertise, we focus on delivering idiosyncratic and uncorrelated returns. Capital is allocated, by the Investment Committee, to the best ideas driven by the corporate cycle, market conditions and mispricing opportunities. Ideas are categorized into different strategies: Volatility, Equity, Credit and Trading. VOLATILITY STRATEGIES EQUITY STRATEGIES CREDIT STRATEGIES TRADING STRATEGIES CONVERTIBLE BOND ARBITRAGE Convertible bond arbitrage involves purchasing a convertible bond, which is a security issued by a company that may be converted from debt to equity at various prices and points in time. There are many types of convertible bond, including mandatory convertible bonds which have predetermined and fixed conversion or redemption features. The hybrid nature of convertibles, combining both fixed income and equity characteristics, can be exploited through an arbitrage when the price of the convertible bond differs from the sum of the value of each of its components. Investors can purchase (or sell) the convertible bond at a discount (or premium) to its fair value and hedge one or more of its components. In general, arbitrage opportunities arise when the equity option embedded in the convertible bond is, for a variety of reasons, priced differently to those of equivalent pure options that may exist in the market. Hence, the equity component is often hedged by selling short the underlying common stock. VOLATILITY ARBITRAGE Volatility arbitrage is an investment approach that seeks to exploit volatility pricing discrepancies across related instruments. For example, it is quite common for arbitrage opportunities to exist between warrants issued by a company to its shareholders and the corresponding equivalent options available in the market. This is capitalised upon by buying the warrant and selling the corresponding equivalent option. This particular strategy is referred to as corporate warrant arbitrage. Generally, managers focusing on volatility arbitrage tend to maintain market neutral portfolios that can profit from the tendency of volatility to oscillate around a mean. GAMMA TRADING Gamma trading is an investment approach that seeks, through the trading of options and other derivative instruments, to take advantage of anticipated or unanticipated dislocations in financial markets, such as market crashes. To determine a gamma trading opportunity, the managers will compare the implied volatility embedded in an option with recent realised volatility in order to find an implied volatility discount. Fundamental analysis is used to try and determine the cause of the discount and potential catalysts for a significant change in volatility. WHAT WE DO INVESTMENT APPROACH ESG POLICY WHO WE ARE Discover OUR FUNDS Discover LEGAL INFOPRIVACY POLICYREGULATORY DISCLOSURESSITEMAPSUBSCRIBEHOW TO INVEST © 2020 Boussard & Gavaudan All rights reserved. Agence Web : 6LAB By continuing to browse this website you are agreeing to our use of cookies. Read our privacy policy ok