Tycho launches $60m convertible arbitrage fund with Zazove

Tycho Capital launched the Tycho Zazove Convertible Arbitrage Fund in 2026 with US-based convertible securities specialist Zazove Associates. The fund opened with about $60 million raised from UK and European wealth managers, family offices and institutional investors. It will target pricing inefficiencies in global convertible bond markets.

Convertible arbitrage typically involves buying convertible bonds while shorting the underlying equities to capture relative value and reduce exposure to broad market moves. The fund’s stated objective is to generate consistent risk-adjusted returns through trading, hedging and credit analysis.

Zazove Associates, founded in 1971, manages about $1.9 billion in assets. The firm uses fundamental credit analysis combined with active trading and risk management to identify opportunities across regions and sectors.

The Tycho Zazove Convertible Arbitrage Fund is Tycho Capital’s second fund launch of 2026, following the Tycho CapeView European Long Short Fund. Tycho has expanded its alternatives platform by partnering with specialist managers across a range of strategies.

Georg Reutter, partner and CEO of Tycho Capital, commented, “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, noted, “Higher yields, increased issuance and greater market dispersion are creating a favourable backdrop for the strategy.”

The fund attracted initial capital from private wealth managers, family offices and institutional allocators in the UK and Europe. Its approach aims to exploit price gaps between convertible bonds and their underlying stocks while managing credit and market risks through trading and hedging.