Boasting the best risk/return performance over five-years is Ferox Capital’s Rupert Mathews. The boutique co-founder has over 16 years’ experience in convertibles trading and co-manages the Salar A1 USD Acc fund which he launched in March 2008 and is registered for sale in the UK, Ireland and Austria.
In the Salar fund, Mathews’ investment strategy is to invest in convertible bonds that are trading close to their fixed income value, which prove to be less sensitive to share price movement and are more bond-like in their risk profile offering protection if share prices fall.
If share prices do rise, the convertible bonds can still participate in this rise as they become increasingly equity-like.
Over the last five years, Mathews returned 33.07%, which compares to the average manager’s return of 10.38% in US dollar terms. The last 12 months in particular has been a rough ride for most managers in the sector with the average manager losing 11.36%.
Mathews has been able to outpace his peers during this time and, over the year to the end of March 2015, has returned positive figures of 5.35%. This was achieved with the lowest volatility compared to all his peers in the sector over one year.