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Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 10/30/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
8.9%
1 yr return
8.9%
3 Yr Avg Return
3.7%
5 Yr Avg Return
4.8%
Net Assets
$970 M
Holdings in Top 10
25.1%
Expense Ratio 1.47%
Front Load N/A
Deferred Load N/A
Turnover 45.00%
Redemption Fee N/A
Standard (Taxable)
$25,000
IRA
$25,000
Fund Type
Open End Mutual Fund
Name
As of 10/30/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund invests primarily in a diversified portfolio of convertible securities issued by both U.S. and foreign companies. These convertible securities are typically debt securities or preferred stocks that can be exchanged for, or convert automatically to, common stock. Convertible arbitrage involves purchasing such a portfolio of convertible securities and hedging the equity risk inherent in such securities by selling short the common stock into which the securities may be converted. The Fund’s convertible arbitrage strategy is intended to offer investors the potential for yield and capital appreciation with less risk than traditional equity indices due to the convertible securities being hedged by shorting the underlying common stock.
In so doing, the Fund is designed to provide investors with a potential source of alternative income and returns from investments in interest and dividend-paying convertible securities and trading based on the pricing inefficiencies of the options embedded in the convertible securities.
Although the Fund may invest in securities of issuers of any market capitalization, the Fund expects to invest primarily in small- and mid-capitalization companies. For these purposes, the Fund considers small capitalization companies to be those with a market capitalization of less than $2 billion at the time of investment and mid-capitalization companies to be those with a market capitalization between $2 billion and $10 billion at the time of investment.
The Fund may also invest in below investment grade securities with individual ratings ranging from BB+ to CCC. The weighted average grade of bonds in the Fund’s portfolio is typically below investment grade. Such “junk bonds” typically are rated Bal or below by Moody’s, BB+ or below by S&P or BBB- or below by Fitch. The Fund may purchase unrated securities if, at the time of purchase, Absolute believes that they are of comparable quality to rated securities that the Fund may purchase.
The Fund may invest, long or short, in securities of issuers of any market capitalization in the U.S. or abroad. The securities in which the Fund typically takes a long position include convertible bonds, such as private placement/ restricted and Rule 144A securities and contingent convertible securities (“CoCos”), which are fixed-income instruments that are convertible into equity if a pre-specified trigger event occurs. As part of its convertible arbitrage strategy, the Fund typically invests in short equity positions against a long convertible position of the same issuer, which may include shorting the common stock of such issuer, or shorting certain exposures to non-U.S. issuers obtained through investments in American Depositary Receipts (“ADRs”). The Fund may also invest in pooled investment vehicles, including other registered investment companies and ETFs, and may utilize treasury futures to manage interest rate risk.
The Fund may focus its investments in securities of a particular sector from time to time, including the Information Technology Sector, Healthcare Sector, Consumer Discretionary Sector, or Industrials Sector.
The Fund may engage in active and frequent trading of portfolio securities.
Period | ARBIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.9% | -11.6% | 15.8% | 77.00% |
1 Yr | 8.9% | -33.0% | 41.7% | 16.50% |
3 Yr | 3.7%* | -10.5% | 13.4% | 20.41% |
5 Yr | 4.8%* | -4.8% | 11.1% | 100.00% |
10 Yr | N/A* | -4.6% | 7.6% | 100.00% |
* Annualized
Period | ARBIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 1.6% | -31.7% | 23.2% | 17.35% |
2022 | -3.8% | -20.7% | 10.7% | 23.71% |
2021 | -0.2% | -12.4% | 14.7% | 35.56% |
2020 | 6.2% | -13.2% | 12.9% | N/A |
2019 | 3.4% | -11.7% | 7.9% | N/A |
Period | ARBIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 8.9% | -11.7% | 15.8% | 79.00% |
1 Yr | 8.9% | -33.0% | 41.7% | 16.50% |
3 Yr | 3.7%* | -10.5% | 13.4% | 18.37% |
5 Yr | 4.8%* | -4.8% | 11.1% | 100.00% |
10 Yr | N/A* | -4.6% | 7.6% | 100.00% |
* Annualized
Period | ARBIX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 6.3% | -31.7% | 23.2% | 17.35% |
2022 | -0.5% | -20.7% | 10.7% | 23.71% |
2021 | 2.9% | -12.4% | 14.7% | 40.00% |
2020 | 9.7% | -12.7% | 12.9% | N/A |
2019 | 6.4% | -11.5% | 13.2% | N/A |
ARBIX | Category Low | Category High | ARBIX % Rank | |
---|---|---|---|---|
Net Assets | 970 M | 105 K | 12.6 B | 30.77% |
Number of Holdings | 212 | 5 | 2526 | 48.08% |
Net Assets in Top 10 | 237 M | -619 M | 6.53 B | 37.50% |
Weighting of Top 10 | 25.10% | 7.6% | 96.1% | 82.93% |
Weighting | Return Low | Return High | ARBIX % Rank | |
---|---|---|---|---|
Convertible Bonds | 94.29% | 0.00% | 95.47% | 0.96% |
Bonds | 87.33% | -1.04% | 63.30% | 97.12% |
Cash | 47.28% | -225.56% | 102.75% | 35.58% |
Preferred Stocks | 0.00% | 0.00% | 5.67% | 85.58% |
Other | -0.01% | -11.90% | 43.69% | 89.42% |
Stocks | -34.60% | -57.09% | 325.56% | 100.00% |
Weighting | Return Low | Return High | ARBIX % Rank | |
---|---|---|---|---|
Corporate | 66.25% | 0.00% | 100.00% | 13.46% |
Cash & Equivalents | 9.64% | 0.00% | 100.00% | 81.73% |
Securitized | 0.00% | 0.00% | 27.70% | 80.77% |
Municipal | 0.00% | 0.00% | 3.82% | 80.77% |
Government | 0.00% | 0.00% | 73.33% | 84.62% |
Derivative | -0.01% | 0.00% | 30.95% | 82.69% |
Weighting | Return Low | Return High | ARBIX % Rank | |
---|---|---|---|---|
US | 87.33% | -1.04% | 80.93% | 97.12% |
Non US | 0.00% | -64.71% | 9.68% | 80.77% |
ARBIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.47% | 0.73% | 9.52% | 69.90% |
Management Fee | 1.00% | 0.13% | 1.65% | 60.58% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | N/A | 0.06% | 0.40% | N/A |
ARBIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 2.75% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
ARBIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
ARBIX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 45.00% | 30.00% | 483.00% | 23.60% |
ARBIX | Category Low | Category High | ARBIX % Rank | |
---|---|---|---|---|
Dividend Yield | 3.31% | 0.00% | 0.75% | 76.92% |
ARBIX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | SemiAnnual | Annually | Quarterly | Annually |
ARBIX | Category Low | Category High | ARBIX % Rank | |
---|---|---|---|---|
Net Income Ratio | 0.10% | -2.49% | 4.20% | 26.21% |
ARBIX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Jun 28, 2024 | $0.190 | OrdinaryDividend |
Dec 29, 2023 | $0.230 | OrdinaryDividend |
Jun 30, 2023 | $0.166 | OrdinaryDividend |
Dec 30, 2022 | $0.107 | OrdinaryDividend |
Dec 13, 2022 | $0.030 | CapitalGainShortTerm |
Dec 13, 2022 | $0.194 | CapitalGainLongTerm |
Jun 30, 2022 | $0.029 | OrdinaryDividend |
Dec 14, 2021 | $0.005 | CapitalGainShortTerm |
Dec 14, 2021 | $0.344 | CapitalGainLongTerm |
Dec 11, 2020 | $0.317 | CapitalGainLongTerm |
Jun 30, 2020 | $0.010 | OrdinaryDividend |
Dec 31, 2019 | $0.040 | OrdinaryDividend |
Dec 13, 2019 | $0.192 | CapitalGainLongTerm |
Jun 28, 2019 | $0.066 | OrdinaryDividend |
Dec 14, 2018 | $0.091 | CapitalGainShortTerm |
Dec 14, 2018 | $0.060 | CapitalGainLongTerm |
Jun 29, 2018 | $0.050 | OrdinaryDividend |
Dec 15, 2017 | $0.024 | CapitalGainShortTerm |
Start Date
Tenure
Tenure Rank
Aug 14, 2017
4.8
4.8%
Mr. Hage is the Chief Investment Officer of Mohican Financial Management, LLC, is responsible for managing the convertible arbitrage portfolio. Prior to founding Mohican in 2002, Mr. Hage spent several years trading and selling convertible securities for investment banks Citigroup, Bear Stearns and Smith Barney. Mr. Hage received his BS degree from Cornell University and his MBA from Columbia Business School.
Start Date
Tenure
Tenure Rank
Dec 31, 2020
1.41
1.4%
aniel Hage Highlights: –7 years of convertible securities experience (2 years in sales, 5 years as broker) –Developed trading ideas for clients through exhaustive review of equity and convertible research –Established strong relationships with institutional traders and convertible arbitrage managers Background: –3/00-5/02: CIBC World Markets –1/98-3/00: Fahnestock & Company –1/95-12/97: Murphy & Durieu –2/90-5/92: Time Warner Education: –University at Albany, MBA –LeMoyne College, B.S. in Business Administration
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.08 | 30.59 | 6.3 | 9.42 |
Dividend Investing Ideas Center
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