• Industry
  20% maximum exposure
• Credit Quality
  Credit spread diversification
• Convertible Instruments
  Bonds (zero/coupon),
  preferreds & mandatories
• Market Capitalization
  Sensitive to capitalization
  category weights

• Individual Positions
  10% minimum exposure of capital
• Interest Rate Sensitivity
  Bond exposure hedged to
  ³ 35%, but £ 65%
• Equity Sensitivity
  Bonds (zero/coupon),
  preferreds & mandatories
• Market Capitalization
  10% maximum delta bias per position

(Convertible Arbitrage ONLY)

Assess and control long and premium risk by stress testing the portfolio under various scenarios. Diversified strategies and positions. Leverage appropriate to portfolio risk, always within a range of 1x-5x.