Dec
29
Secret Behind Junk Funds That Made Money in 2015: No Heroics
By-
Wells Fargo, Rochdale, Prudential played it safe, shunned oil
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`Not a bad strategy’ still, as high-yield pain seen lingering
Don’t be a hero.
That’s the strategy the most successful high-yield money managers of 2015 attribute to their success. As junk bonds tanked, defaults rose and Third Avenue Management LLCshocked the market by temporarily suspending shareholder withdrawals, managers at the top speculative-grade funds this year benefited by simply staying away from the worst of the carnage.
That meant resisting the lure of junk-bonds issued by the riskiest borrowers even as yields rose to their highest levels since the financial crisis, holding on to debt that would mature soonest, and avoiding anything that reeked of oil…
Secret Behind Junk Funds That Made Money in 2015: No Heroics
