Fund Evaluator:
Absolute Convertible Arbitrage Inv (ARBOX)
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Best Performing in Relative Value Arbitrage Over the Last Year
| 8.5% | Absolute Convertible Arbitrage Inv (ARBOX) |
| 6.5% | American Beacon SSI Alternative Inc Inv (PSCAX) |
| 5.7% | AQR Diversified Arbitrage N (ADANX) |
Fund Details
Absolute Convertible Arbitrage Inv Overview
Absolute Convertible Arbitrage Inv (ARBOX) is an actively managed Alternative Relative Value Arbitrage fund. Absolute Investment Advisers launched the fund in 2021.
The investment seeks to achieve positive absolute returns over the long-term with low volatility when compared to traditional market indices. The fund invests primarily in a diversified portfolio of convertible securities issued by both U.S. and foreign companies. These convertible securities are typically debt securities or preferred stocks that can be exchanged for, or convert automatically to, common stock.
About Absolute Convertible Arbitrage Inv (ARBOX)
There are 2 members of the management team with an average tenure of 7.28 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: Bloomberg US Agg Bond TR USD index with a weighting of 100% and S&P 500 (TR) (1970) index with a weighting of 100%. Absolute Convertible Arbitrage Inv has 273 securities in its portfolio. The top 10 holdings constitute 29.7% 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 Inv is part of the Alternative Strategies global asset class and is within the Alternative fund group. Absolute Convertible Arbitrage Inv has -2.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -44.0%. There is -2.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.4% (0.4% domestic bond, 0.0% foreign bond and 85.0% convertible bond). Absolute Convertible Arbitrage Inv has 60.6% of the portfolio in cash.
Assets Under Management
The fund has $339 million in total assets, which is below 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.
ARBOX 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 Inv expense ratio is high compared to funds in the Relative Value Arbitrage category. Absolute Convertible Arbitrage Inv has an expense ratio of 1.73%, which is 21% higher than its category average, making the fund expense ratio grade a F. 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 Inv 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 July 2026, Absolute Convertible Arbitrage Inv returned 0.0%, which earned it a grade of F, as the Relative Value Arbitrage category had an average return of 0.3%. 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 Inv has a trailing yield of 1.97%, which is below the 2.27% category average. The fund normally distributes its income semi-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 Inv Grades
Year to date, the fund has returned 5.0%, 0.8 percentage points better than the category, which translates into a grade of B. The fund has returned 8.5% over the past year (grade of B), 7.3% over the past three years (grade of B) and 5.1% per year over the past five years (grade of A).
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ARBOX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ARBOX Return (NAV) | 0.0% | 1.9% | 8.5% | 7.3% | 5.1% | na |
| ARBOX Grade | F | B | B | B | A | na |
| +/- Category | -0.3% | 0.2% | 1.0% | 0.2% | 0.6% | na |
| Relative Value Arbitrage Avg | 0.3% | 1.6% | 7.6% | 7.1% | 4.6% | 5.1% |
| ARBOX Tax Cost Ratio | na | na | 1.6% | 1.5% | 1.3% | na |
ARBOX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ARBOX Return (NAV) | 5.0% | 8.0% | 7.3% | 5.0% | -0.8% | 2.7% | 9.0% | 6.1% | 1.8% | na | na |
| ARBOX Grade | B | B | C | F | A | F | C | F | B | na | na |
| +/- Category | 0.8% | -0.2% | -0.1% | -1.9% | 2.9% | -1.8% | -1.9% | -1.1% | 0.9% | 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: | 1.6% |
| Total Risk Index: | 0.13 - Low |
| Category Risk Index: | 0.80 - Low |
| Category Risk Grade: | A (12% Rank) |
| Beta: | 0.10 |
| R-Squared: | 60% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 2.0% |
| Dividend Distribution: | Semi-Annually |
| Cap Gains Distribution: | |
| Total Assets: | $1930 Mil |
| Fund Total Assets: | $ 340 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 24% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 9.0 years | |||
| Average Tenure: 7.3 years | |||
| Managers (Year): Hage Eric (2017), Hage Daniel (2020) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 273 |
| % in Top 10 Holdings: | 29.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | -2.1% |
Portfolio Allocation |
|
| Domestic Stock: | -44.0% |
| Foreign Stock: | -2.1% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.4% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 85.0% |
| Other: | 0.0% |
| Cash: | 60.6% |
Purchase Information
| Fund Family: | Absolute Investment Advisers |
| Phone Number: | 888-992-2765 |
| Website: | www.absoluteadvisers.com |
| Status: | Open |
| Inception Date: | February 25, 2021 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $2,500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 1.73% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.43% |
| Share Class: | Absolute Convertible Arbitrage Instl |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
