Convertibles Make The Difference

Tracy Maitland's convertible securities strategy lessened market risk

less than a dollar away from its buyback price), showed a 25.1% gain compared to the stock, which lost 39.2% primarily due to the takeover.

Maitland’s Convertible Strategy Performance

Company
Exchange: Symbol
Convert
Yield
Date of
Maturity
8/10/01
Stock
Price
8/10/01
Convert
Price
8/12/02
Stock
Price
Stock
Performancex
8/12/02
Convert
Price
Convert
Performancex
The BISYS Group (BSG) 4.00% 3/15/2006* $26.53 $103.44 $22.05 – 16.9% $95.69 – 3.6%
First Data Corp. (FDC) 2.00 3/01/2008† 33.70 106.83 34.05 1.2 109.90 4.7
Lamar Advertising (LAMR) 5.25 9/15/2006 37.79 103.15 29.94 – 20.8 92.29 – 5.4
Western Gas Resources (WGR) 5.25 N/A 29.55 43.07 31.70 8.0 47.16 15.6
COR Therapeutics (CORR) 5.00 3/01/2007‡ 23.45 90.00 14.25 – 39.2 107.58 25.1

Value of stock performance on an investment of $5,000: $4,314.23 ( — 13.72%).

Value of convertibles performance on an investment of $5,000: $5,157.71 (+7.3%).

*TICKER CHANGED FROM BSYS. AUGUST 10, 2001 STOCK PRICE ADJUSTED FOR SUBSEQUENT 2-FOR-1 STOCK SPLIT. †AUGUST 10, 2001 STOCK PRICE ADJUSTED FOR SUBSEQUENT 2-FOR-1 STOCK SPLIT. ‡ACQUIRED BY MILLENNIUM PHARMACEUTICALS FOR 0.9873 MLNM SHARE PER CORR SHARE. 8/12/02 STOCK PRICE ADJUSTED TO REFLECT THE VALUE OF 0.9873 MLNM SHARE. xPERFORMANCE IS PRICE APPRECIATION/DEPRECIATION PLUS YIELD. (NOT COMPOUNDED.)

SOURCE: KYNEX

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