Convertible Bond Boom Delivers Hedge Fund LMR’s Traders 30% Gain

A team of traders specializing in convertible bonds at multistrategy hedge fund LMR Partners is on track for record yearly gains as a surge in issuances and a pickup in corporate actions create a fertile hunting ground for the arbitrageurs.

The crew led by Dubai-based Seb Gorga and Zurich-based Vincent Olekhnovitch made a net 30% return through Oct. 17 in the LMR Convertible and Capital Structure Arbitrage Fund that manages more than $1 billion, according to a person with knowledge of the matter. The team overall runs more than $1.8 billion, including allocation from LMR’s flagship multistrategy hedge fund, the person said, asking not to be identified because the details are private.