Tycho Capital has expanded its alternatives platform with the launch of the Tycho Zazove Convertible Arbitrage Fund, a strategy managed by US-based convertible securities specialist Zazove Associates.
The fund launched with approximately $60 million in assets, attracting capital from wealth managers, family offices and institutional investors across the UK and Europe. The launch reflects growing investor interest in diversified, low-correlation strategies amid heightened market uncertainty.
The strategy seeks to exploit pricing inefficiencies in global convertible bond markets through a convertible arbitrage approach, typically involving long positions in convertible bonds combined with short positions in the underlying equities. The objective is to generate consistent risk-adjusted returns while limiting exposure to broader market movements.
Founded in 1971, Zazove Associates is one of the longest-established dedicated convertible securities managers, overseeing approximately $1.9 billion in assets. The firm combines fundamental credit analysis with active trading and risk management to identify opportunities across regions and sectors.
The launch marks Tycho Capital’s second fund introduction of 2026, following the debut of the Tycho CapeView European Long Short Fund earlier this year. The firm has continued to expand its platform by partnering with specialist alternative investment managers across a range of strategies.
Georg Reutter, partner and CEO of Tycho Capital, said convertible arbitrage is particularly attractive in the current environment given elevated market volatility and the opportunity to capture pricing dislocations. Gene Pretti, CEO and CIO of Zazove Associates, added that higher yields, increased issuance and greater market dispersion are creating a favourable backdrop for the strategy.
The launch highlights continued demand from allocators for alternative return streams that can offer diversification benefits alongside relatively low correlation to traditional equity and fixed-income markets.
