This mindset is the opposite of
the way bond managers think.
Not exact matches
«Jeffrey Gundlach Celebrates Anniversary of Getting Fired in Cockiest
Way Possible,» blared the headline at New York magazine's «Daily Intel» website, which reported that asset
manager TCW fired the star
bond investor three years ago Tuesday.
If I am right that equity fund
managers are fully allocated to stocks now, the only
way we can get excess gains in the stock market is if new liquidity is created by bank lending, or liquidity is transferred from the
bond market to equities.
Russian striker Roman Pavlyuchenko could be on his
way out of Tottenham after a training ground bust - up with assistant
manager Kevin
Bond.
Howard Croft, WEA Project
Manager, said: «We're really pleased to have taken part in this experiment, which has shown that singing can be a great
way to form close
bonds with others.
Mutual funds are a great
way for investors to gain exposure to many different stocks,
bonds and other asset classes in a single, diversified portfolio that is run by a professional money
manager.
One reason I was an effective corporate
bond manager was the
way that I treated my brokers.
The unconstrained strategy can be thought of in two
ways: always trying to earn a positive return with high probability (T - bills are the benchmark, if any), or being willing to accept equity - like volatility while the
bond manager sources obscure
bonds, or takes large interest rate or credit risks.
Loyalty to our customers is one
way we create this
bond between the loan
managers and the customers.
And to the degree that you are a smart
manager, you can lessen your dependence on the big guys, and work with the hungry second tier, who know that money can be made by implementing the ideas of smart investors, so find
ways to buy cheap
bonds for smart investors from dumb investors, and sell rich
bonds from smart investors to dumb investors.
There are only two
ways that a
bond manager can deliver superior returns than a broad - market index.
Let me put it this
way, if someone can pick the best performing index of
bonds to compare against stocks, what is to keep the stock
manager from picking the best sub-index of stocks to be the policy comparison?
An individual investor in Kansas can trade
bond ETFs on a stock exchange in the same
way as a hedge fund
manager in New York would.
In some
ways, we need to retrain all investors to think like
bond managers — examining balance sheets, cash flow statements, and avoid companies that have higher probability of bankruptcy.
Personally, I don't think Gundlach makes his money that
way for his funds, but in case he does, how should a good
bond manager view junk
bonds?
The returns of equities can be explained in a simpler non-binary
way, one that a businessman or
bond manager could appreciate.
The most likely
way there is a difference between your portfolio and that of VBTLX is if the
manager of that fund rebalances (sells aging
bonds and buys newer ones so as to maintain a target maturity).
Though I was only a corporate
bond manager for two very special years, where I did well against a tough market, the
way I did business helped us to do well, by being ethical above all else.
Also, if you bought the underlying and held them to maturity, then your potfolio would start out with a long duration and grow shorter over time (Unless you keep buying
bonds the same
way the mutual fund
manager does).
That is a simple
way for
bond managers at banks, insurance companies, pension funds and endowments to manage their
bond assets.
In closing, as an aside, can you imagine a question given at the Presidential debates that went something like this: «Senator, the leading
bond manager of our country, and many leading financial writers (e.g. James Grant, Barry Ritholtz) have argued that the
way that the government calculates the CPI is flawed, and understates the change in the cost of living.
Forex managed accounts can be compared to traditional investment accounts of equities and
bonds, in the
way that an investment
manager handles the trading logistics.