CONVERTIBLES

Philosophy

The Gabelli Convertible Securities Team uses convertible securities as a means for reduced volatility equity investing. We believe that convertibles are an attractive, overlooked asset class due to their asymmetrical return profile which allows us to maintain exposure to the upside in their underlying equities while collecting income and reducing our potential downside.

Objectives

We use convertible securities to achieve total returns through a mix of income and capital appreciation. Over long time horizons we aim to achieve returns that are in line with broad equity indices with lower volatility.

Methodology

The managers evaluate every convertible issue to maintain a working knowledge of the convertible universe and to determine whether a convertible may be attractive to include in the portfolio. Following the initial analysis of the convertible's terms, the team does a thorough analysis of the underlying equity fundamentals. The portfolio is constructed from a bottom up perspective, ideally using attractive convertible securities in undervalued equities. Generally, by picking convertibles with attractive asymmetrical return profiles, we construct a portfolio that has a balance of income and capital appreciataion potential which has historically outperformed in flat and down equity markets while still participating in rising equity markets.

Institutional client strategies since 1979.

Institutional Composites

Composite NameInception Date
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Management Team

Thomas Dinsmore, CFA

Thomas Dinsmore, CFA

Portfolio Manager, Convertibles

Fairleigh Dickinson - MA

Jane O'Keefe

Jane O'Keefe

Portfolio Manager, Convertibles

Univ. of New Hampshire - BA

James Disnmore, CFA

James Disnmore, CFA

Portfolio Manager, Convertibles

Rutgers University - MBA

We believe that convertibles are an attractive, overlooked asset class due to their asymmetrical return profile which allows us to maintain exposure to the upside in their underlying equities while collecting income and reducing our potential downside.

Important Information

The Dinsmore Group of Gabelli Funds, LLC (DG) is a distinct business entity of Gabelli Funds, LLC. DG is the portfolio management team based in the Morristown, NJ office that manages and markets Gabelli Funds' convertible strategies. The firm maintains a complete list and description of composites, which is available upon request. DG was formally named Dinsmore Capital Management (DCM). All of the assets managed by DCM are the same assets managed by The Dinsmore Group of Gabelli Funds, LLC and these assets constitute The Dinsmore Group of Gabelli Funds, LLC Composite. As of 12/31/18, composite assets were $290.9 million. The Dinsmore Group of Gabelli Funds, LLC Composite includes all portfolios with a target allocation of at least 65% convertible securities and no more than 35% nonconvertible securities. The strategy aims to deliver a total return through a combination of income and capital appreciation with lower volatility than the S&P 500. Currently this consists of Bancroft Fund Ltd. and Ellsworth Fund Ltd. The benchmark is the Bank of America Merrill Lynch All Convertibles Index (VXA0). The VXA0 is an unbiased proxy for the broad U.S. Convertible Market. It is composed of USD denominated Convertibles over $50mm market value that are convertible into USD denominated common Stock, ADRs, or cash equivalent. Index returns are calculated on a monthly basis. “The Dinsmore Group of Gabelli Funds claims compliance with the Global Investment Performance Standards (GIPS®)."
The Gabelli Mutual Funds are distributed by G.distributors, LLC., a registered broker-dealer and member of FINRA.

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