Mellon HBV launches convertible arbitrage discipline

Mellon HBV Alternative Strategies has added a convertible arbitrage investment
discipline to its range of arbitrage offerings.


Jonathan S. Bean, Mellon HBV Managing Director, said: "The large increase in
the number and size of new convertible issues should translate into many
compelling investment opportunities. This new strategy rounds out our arbitrage
offerings, and adds a new dimension to our multi-strategy discipline."


According to Morgan Stanley, the par value of total convertible issues in the US,
Europe, Japan, and Asia was USD 610 billion in 2003, far surpassing the total
value of USD 488 billion for 2002. 


Ronald P. O'Hanley, Mellon vice chairman and president of its institutional
asset management group, said: "Convertible arbitrage represents our
continuing commitment to bring new, high-quality alternative strategies to the
institutional market."


Mellon HBV's new discipline is offered to onshore and offshore investors and is
a natural extension to Mellon HBV's current capabilities.  It follows a research
and investment process with strict risk management parameters to invest in a
diverse mix of US and non-US convertible bonds and equity-linked securities.


The investment team has a five-year track record and combined experience of
over 70 years in convertible arbitrage investing.  Their investment process is
designed to take advantage of pricing inefficiencies across a spectrum of
convertible strategies and utilizes the team's expertise in hedging various risk
components. The team, led by Stuart Dubson and John Ginsbury, adheres to a
risk-averse portfolio construction methodology and conducts thorough credit
and fundamental analysis on each investment.


Stuart Dubson, portfolio manager at Mellon HBV, was most recently Chief
Investment Officer and Managing General Partner of Sparta Partners LP.  He
previously managed global convertible arbitrage portfolios at various hedge
funds, beginning his career at Elliott Associates LP. He also established the
convertible securities sales and trading department for Banque Arabe et
Internationale d'Investissements (BAII) in New York and Brean Murray & Co.,
Inc.


John Ginsbury, senior analyst at Mellon HBV, was most recently the director
and Chief Investment Officer of Manco Limited, and a General Partner of Sparta
Partners.   He was a director of capital markets at BAII, supervising USD 2 billion
in assets, and chairman of their Intermarket Fund, a global convertible arbitrage
fund.


Jim Burns, trader, and Tom Balamaci, analyst, will complete the investment
team. Mickey Harley, Mellon HBV president and chief investment officer, will
oversee the investment team.


Background Note: Mellon HBV Alternative Strategies LLC is an investment
management company that seeks superior risk-adjusted investment
performance primarily for institutional investors via an array of alternative
investment disciplines.  Headquartered in New York with offices in London,
Mellon HBV has combined assets under management in excess of USD 1
billion in four primary event-driven investment disciplines: Arbitrage (US Risk
Arbitrage, Global Risk Arbitrage, Convertible Arbitrage), Distressed (Hedged
Distressed, Long-Only Control Oriented Distressed, Long-Only Trading Oriented
Distressed); Special Situations/Event Driven (US Special Situations, European
Event Driven), and Multi-Strategy Investing, which are only offered to financially
sophisticated investors.


Mellon HBV Alternative Strategies is a Securities and Exchange Commission-
registered investment advisor, and its subsidiary, Mellon HBV Alternative
Strategies UK Limited, is regulated by the Financial Services Authority in the
United Kingdom.


Mellon HVB is a subsidiary of Mellon Financial Corporation, a global financial
services company.  Headquartered in Pittsburgh, Mellon is one of the world's
leading providers of financial services for institutions, corporations and high
net worth individuals, providing institutional asset management, mutual funds,
private wealth management, asset servicing, human resources services and
treasury services.  Mellon has approximately USD 3.5 trillion in assets under
management, administration or custody, including USD 657 billion under
management.  Its asset management companies include The Dreyfus
Corporation and U.K.-based Newton Investment Management Limited.
 

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