Fund Evaluator:
Absolute Convertible Arbitrage Instl (ARBIX)
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Best Performing in Relative Value Arbitrage Over the Last Year
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Fund Details
Absolute Convertible Arbitrage Instl Overview
Absolute Convertible Arbitrage Instl (ARBIX) is an actively managed Alternative Relative Value Arbitrage fund. Absolute Investment Advisers launched the fund in 2017.
The investment seeks to achieve positive absolute returns over the long-term with low volatility when compared to traditional market indices. The fund invests, at least 80% of its net assets (plus borrowings for investment purposes) in a diversified portfolio of convertible securities issued by both U.S. and foreign companies. The fund may invest in securities of issuers of any market capitalization, the Advisor expects to invest primarily in small- and mid-capitalization companies.
About Absolute Convertible Arbitrage Instl (ARBIX)
There are 2 members of the management team with an average tenure of 7.36 years: Eric Hage (2017), Daniel Hage (2020). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Absolute Convertible Arbitrage Instl has 281 securities in its portfolio. The top 10 holdings constitute 31.4% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Absolute Convertible Arbitrage Instl is part of the Alternative Strategies global asset class and is within the Alternative fund group. Absolute Convertible Arbitrage Instl has -2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -36.1%. There is -2.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 1.1% (1.1% domestic bond, 0.0% foreign bond and 76.9% convertible bond). Absolute Convertible Arbitrage Instl has 61.1% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is above the $1 billion average for the Relative Value Arbitrage category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ARBIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Absolute Convertible Arbitrage Instl expense ratio is high compared to funds in the Relative Value Arbitrage category. Absolute Convertible Arbitrage Instl has an expense ratio of 1.36%, which is 4% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Absolute Convertible Arbitrage Instl has a portfolio turnover rate of 24%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 252% for the Relative Value Arbitrage category.
Recently, in the month of August 2026, Absolute Convertible Arbitrage Instl returned -0.1%, which earned it a grade of C, as the Relative Value Arbitrage category had an average return of 0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Absolute Convertible Arbitrage Instl has a trailing yield of 2.18%, which is above the 2.16% category average. The fund normally distributes its income semi-annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Absolute Convertible Arbitrage Instl Grades
Year to date, the fund has returned 5.0%, 0.8 percentage points better than the category, which translates into a grade of A. The fund has returned 7.9% over the past year (grade of A), 7.6% over the past three years (grade of B) and 5.3% per year over the past five years (grade of A).
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ARBIX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ARBIX Return (NAV) | -0.1% | 0.6% | 7.9% | 7.6% | 5.3% | na |
| ARBIX Grade | C | D | A | B | A | na |
| +/- Category | -0.1% | -0.2% | 1.0% | 0.5% | 0.8% | na |
| Relative Value Arbitrage Avg | 0.0% | 0.8% | 6.9% | 7.1% | 4.5% | 5.0% |
| ARBIX Tax Cost Ratio | na | na | 1.7% | 1.6% | 1.4% | na |
ARBIX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARBIX Return (NAV) | 5.0% | 8.3% | 7.5% | 5.3% | -0.5% | 2.9% | 9.3% | 6.4% | 2.1% | na | na |
| ARBIX Grade | A | B | B | D | A | F | C | F | A | na | na |
| +/- Category | 0.8% | 0.1% | 0.2% | -1.6% | 3.2% | -1.6% | -1.7% | -0.8% | 1.2% | na | na |
| Relative Value Arbitrage Avg | 4.2% | 8.2% | 7.4% | 6.9% | -3.7% | 4.6% | 11.0% | 7.2% | 0.9% | 4.0% | 5.5% |
| Risk Measures | |
| Standard Deviation: | 1.5% |
| Total Risk Index: | 0.13 - Low |
| Category Risk Index: | 0.78 - Low |
| Category Risk Grade: | A (6% Rank) |
| Beta: | 0.09 |
| R-Squared: | 52% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 2.2% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1946 Mil |
| Fund Total Assets: | $1,598 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 24% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.1 years | |||
| Average Tenure: 7.4 years | |||
| Managers (Year): Hage Eric (2017), Hage Daniel (2020) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 281 |
| % in Top 10 Holdings: | 31.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | -2.2% |
Portfolio Allocation |
|
| Domestic Stock: | -36.1% |
| Foreign Stock: | -2.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 1.1% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 76.9% |
| Other: | 0.0% |
| Cash: | 61.1% |
Purchase Information
| Fund Family: | Absolute Investment Advisers |
| Phone Number: | 888-992-2765 |
| Website: |
| Status: | Open |
| Inception Date: | August 14, 2017 |
| Min. Initial Purchase: | $25,000 |
| Min. Initial IRA Purchase: | $25,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.36% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.41% |
| Share Class: | Absolute Convertible Arbitrage Instl |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
