Convertible Securities

PENN believes the market regularly misprices convertible securities due to a lack of information or an insufficient understanding of a company’s capital structure. Through our Complete Capital Structure Analysis^®, PENN is able to exploit these inefficiencies by identifying undervalued, mispriced convertible securities, primarily within the universe of small to mid capitalization companies.

The small to mid capitalization convertible marketplace dominates the convertible bond sector in terms of number of issues, yet remains under-covered and underinvested. Many institutional managers avoid this segment of the convertible marketplace due to a lack of formal credit ratings. PENN’s research capability provides a system of early identification and catalyst recognition that allows PENN to exploit opportunities that the market has failed to recognize.