Except for Dr. Feldschuh, Daxor's board has no scientists but does include one arbitrage trader.

Practiced Corporate Law Time magazine in 1977 said his company "is generally considered to be the biggest of all arbitrage traders."

This is important, since many institutional arbitrage traders tend to buy whichever form of equity looks cheap, and sell whichever looks dear.

Mr. Mulheren became one of the most proficient arbitrage traders on Wall Street, making as much as $25 million in 1986, according to published reports.

The third man, Timothy L. Tabor, an arbitrage trader at Kidder, Peabody, was arrested at home and spent the night in jail.

In the 1980's he cultivated their early careers as arbitrage traders at Goldman Sachs, and he is now guiding them in the ways of securing influence in Washington.

But they also speculated that Salomon was trying to shift attention away from its own role as one of the most active index arbitrage traders.

In effect, arbitrage traders synthesize a put option on their ability to finance themselves.

Longtime arbitrage traders say their outlook on an influx of hedge funds is mixed.

He has also worked as an arbitrage trader at Henry Capital.