RT Journal Article SR Electronic T1 Convertible Securities Hedging JF The Journal of Alternative Investments FD Institutional Investor Journals SP 42 OP 49 DO 10.3905/jai.2000.318976 VO 2 IS 4 A1 John M Pagli, Jr. YR 2000 UL https://pm-research.com/content/2/4/42.abstract AB Convertible hedging remains one of the principal investment strategies in alternative investments. Practitioners as well as academics have discussed the pricing and mechanics of convertible hedging on both non–directional and directional bases. Convertible hedging is an investment discipline that seeks to profit from the movements in price of a given convertible security and, typically, the underlying common stock into which the convertible security would be convertible. In its simplest form, a convertible hedge position is established with the purchase of a convertible security and the short sale of a certain number of common shares. In this article, a case study is presented of how a portfolio manager may establish and manage a convertible hedge position.