Loads Of Options

Christopher Gust is an alumnus of two Midwestern institutions known to nurture talent. He played for the University of Michigan baseball team, which over the years has produced Hall of Famers like George Sisler. Gust got his start in finance at Chicago's O'Connor & Associates, a former quantitative options-trading firm whose ranks have included hedge-fund founders such as Scott Prince, Matt Hulsizer, Jennifer Just and Paul Touradji. Wolverine invest in what is broadly known as relative-value strategies. Its hedge fund is Wolverine Convertible Arbitrage, which has an average annualized return of 11.1% over the past seven years. This approach involves buying a convertible security like a bond, and selling short the same issuer's common stock. The hedge-fund manager is trying to spot mispricing between the convertible and underlying stock in a way in which he or she can profit. One of Wolverine's biggest positions is Vale Capital II 6.75% Notes Series VALE-2012.