A hedge fund or open-end mutual fund that has at least temporarily stopped
accepting capital from investors, usually due to rapid asset growth. Not
to be confused with a closed-end fund.
Compounded monthly return
The average monthly increase that, when compounding is taken into account,
would have produced a fund's total return over any period of time. For
example, if a fund had a one-year return of 20%, its compounded monthly
return would be 1.53% -- the amount it would have needed to gain in each
of 12 months to achieve that full-year result.
Convertible arbitrage investment strategy
A conservative, market-neutral approach that aims to profit from pricing
differences or inefficiencies between the values of convertible bonds
and common stock issued by the same company. Managers of such funds generally
purchase undervalued convertible bonds and short-sell the same issuers'
stock. The approach typically involves a medium-term holding period and
results in low volatility.