Convertible Investment Study - May 2021

Tuesday, May 11, 2021

In January 2021, Palisade Capital Management published a research piece entitled “The Time For Convertibles Is (Still) Now”, where we outlined the advantages of investing in the convertible asset class, both historically and tactically, given an impending, post COVID-19 economic cycle. In this study, we seek to touch upon and update key aspects of Palisade's unique approach to investing in convertibles. Palisade's convertible strategies emphasize Growth convertibles (as opposed to Value convertibles) and Large- and Mid-Capitalization convertibles (rather than Small-Capitalization convertibles).

The basis for this methodology was derived from an exhaustive review of the U.S. convertibles universe in white papers we published in 2012:

Conclusion 1: Growth Convertibles Consistently Outperform

Conclusion 2: Small Capitalization Convertibles Significantly Underperform in Down Markets

Since our publications in 2012, there is an additional eight years of data upon which to judge our original conclusions.

Download the Investment Study

For further information regarding this white paper or about Palisade Capital Management, please contact us at info@palcap.com.