18/01/2012 Author: Elana Margulies

Amida Capital streamlines to focus on convertibles

Amida Capital Management, the New York-based investment manager, is to consolidate its two hedge funds this year to increase its focus on convertibles, HFMWeek has learned.  

The move will see the firm wind down its multi-strategy portfolio, the Amida Partners Master Fund, with most investors having already transferred their assets to the Amida Partners Special Opportunity Master Fund – a 2008-launched convertibles offering.

Amida will now increase its focus on convertibles, credit, volatility and capital structure, given the contraction of convertible managers, which has occurred over the past few years, said founding partner David Rich.

“In general, convertibles have performed well relative to the aggregate hedge fund industry in the past few years and especially in 2011,” he said.

“Yet, as it is fairly misunderstood, it continues to see mixed interest from investors. I believe that there is a tremendous opportunity set for this strategy in general and there could be a favorable upside to investors in diversifying their portfolios to include convertibles at these levels,” he added.

The Amida Partners Special Opportunity Master Fund is a global long/short portfolio that utilises convertibles combined with various hedges to capitalise on volatility, mispriced capital structures and issuer corporate actions. Before Rich started Amida, he was the head global portfolio manager at Marathon Asset Management where he built Marathon’s Global Convertible Bond Fund. Previously, he was a portfolio manager at Tribeca Investments and GE Capital.

The Amida Partners Special Opportunity Master Fund gained 0.17% for 2011, 8.43% in 2010, 47.15% in 2009, having declined 1.45% in 2008, according to an investor newsletter.