After a difficult year in 2005, recruiters say convertible arbitrage funds are back in the game when it comes to hiring.
"We're seeing a definite upturn in hiring at convertible arbitrage bond funds compared to last year," says David Durham, managing director of search firm Durham Consulting. "The convert arb funds that are expanding now are those that managed to miss the bullets and step in with cash when the market was at a low level," he adds.
Advent Capital Management, a $3bn (€2.5bn) New York asset manager is among those expanding into Europe. The fund has appointed Connor Maloney, from Oakley Capital Management, to establish a London office. Maloney was unavailable to say how many additional staff may be hired.
The move follows an upturn in performance at convertible arbitrage funds, which generated a net return of 3.6% in the first two months of 2006.
Additional US convertible arbitrage funds may also be preparing to migrate. But the numbers aren't huge: Durham says he knows of at least one other in the pipeline.