EAGLE'S VIEW JAPAN MANAGEMENT, L.P. is a specialist investment manager dedicated to Japanese Convertible Bond Arbitrage. The strategy focuses on identifying mispriced optionality embedded within Japanese convertible bonds and structuring positions to isolate and capture cheap implied volatility while mitigating directional equity and credit exposure. The strategy generates profit by delta hedging stock versus the imbedded option within the Convertible Bond.  As such, a volatile environment for Japanese stocks is most favorable for the strategy. As the Credit and Equity are both hedged, we believe the strategy represents an asymmetric risk and return profile.  

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The strategy utilizes Asset Swapped Convertible Option Transactions (ASCOTs). Through an ASCOT, the strategy sells the fixed-income component of a convertible bond to a yield-seeking counterparty while retaining the equity option. This is how the strategy mitigates the credit risk of a single-name issuer. 

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The strategy seeks to monetize volatility regardless of the overall market direction.  ​