Bill Gross, manager of the world’s biggest bond mutual fund, said Federal Reserve Chairman Ben S. Bernanke will go ahead with a plan to reduce the central bank’s unprecedented asset purchases despite a disappointing jobs report.
Dan Fuss, whose Loomis Sayles Bond Fund beat 98 percent of its peers in the last three years, said the fixed-income market is more “overbought” than at any time in his 55-year career as he prepares to open a fund to British individual investors.
Dan Fuss , whose Loomis Sayles Bond Fund beat 95 percent of competitors the past year, said he sold all of his Treasury holdings because of prospects interest rates will rise as the U.S. borrows unprecedented amounts.
Popularity often comes with a big price in the mutual fund world. Right about the time most of us become aware of a fund's great performance and invest, its returns start to suffer. Academic studies show that a big influx of assets can make a fund less nimble and lead managers outside their ideal investment universe. It can also have a psychological effect on managers, who can become overly risk averse lest they make a mistake and lose all those assets.