Polar Capital Holdings plc today announced the formation of the Global Convertibles team with the hiring of David Keetley, Steve McCormick and Kendrick Li. It is anticipated that the team will launch the Polar Capital ALVA Global Convertibles hedge fund on the 1st November 2010.

The team joins from Vicis Capital based in New York and London. At its peak Vicis Capital managed $5.8bn with $3.3bn of Long Market Value committed to convertibles.

The Polar Capital ALVA Global Convertibles Fund intends to invest in liquid, global convertible securities. The team will look to generate alpha from their long experience in exploiting all appropriate facets of a convertible security and will look to hold over 50 global convertible positions, with a focus on geographic and sector diversification at the outset.

Commenting on the appointments, Tim Woolley, Chief Executive of Polar Capital said:

“We are delighted that David, Steve and Kendrick have joined Polar Capital. David and Steve are highly experienced and well regarded managers in the global convertibles market. The Polar Capital ALVA Global Convertibles fund will be an exciting addition to our hedge fund range and is consistent with our strategy to expand this side of our business through hiring or acquiring experienced and proven teams.”

Commenting on the move to Polar Capital, David Keetley said:

“Polar Capital offers the team the opportunity to grow a global convertibles franchise with the backing of a strong platform and a culture focused on investment outperformance. There is a unique opportunity at this time for us to grow the fund as there is approximately $5 trillion of US & European corporate debt that needs tobe refinanced in the next 5 years whilst bank balance sheets have shrunk and many convertible hedge funds remain closed. Additionally we are seeing a strong resurgence of convertible issuance from Asia. Taken together this will translate into more convertibles investment opportunities with less competition.”