Believe it or not, some bond fund managers have been eagerly awaiting the volatile bond market, and William Eigen
of JP Morgan[profile] Strategic Income Opportunities Fund
is one of them, the WSJ
's Tom Lauricella reported.
Eigen is one of many nontraditional, bond fund managers who searches internationally for bonds with rising prices—and these funds can bet that bond prices will fall, unlike traditional bond funds.
Until recently, the vanilla bond fund did well, gaining 4.3 percent a year over the three years through June.
Nontraditional funds gained 2.7 percent during the same period. These relatively new and increasingly popular funds are doing better but on average, still returned a negative 0.5 percent.
That doesn't stop Eigen from turning bearish on U.S. bonds, saying that taking advantage of the selloff is akin to "picking up nickels in front of a steam roller."
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