Good reading here from the CFA Institute. There are no holy grails in the investment world:
“The performance of convertible arbitrage during the credit meltdown is a textbook example of a liquidity crunch and the limits of arbitrage. The massive losses remind us that liquidity and financing are the lifeblood of many investment strategies and that such strategies face the risk of periodic panics if they evaporate.”
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.