<beliavsky@[EMAIL PROTECTED]
> wrote in message
news:35fbc229-1c57-4d72-b489-842d73308a12@[EMAIL PROTECTED]
> Buying common stock might not be the best trade. Maybe he
> should buy the convertible or buy straight debt and short Treasuries
> of equivalent maturity to reduce duration risk, if the convertibles or
> bonds are underpriced relative to the stock.
> [...]
> If you accept the logic of having an actively managed fund doing
> individual security selection in all types of securities, not just
> common stock, the question is whether there exist managers qualified
> to do this. Balanced fund managers own stocks and bonds, so that could
> be a place to look. Any suggestions?
One manager who does some of this is Marty Whitman (Third Ave Value),
though
his funds are 90+% equity:
"Another hallmark: He likes purchasing bonds in distressed companies with
rebound potential. A big example is Nabors Industries. Whitman bought
bonds
in the oil-drilling company, which then filed for bankruptcy protection in
1987. A year later the company emerged and the bondholders' debt was
converted into equity"
http://www.forbes.com/forbes/2006/0703/085.html
Another manager who comes to mind (at least in terms of being well
qualified
to look at both stocks and bonds) is Bob Rodriguez. Though he seems to
keep
each of his funds "pure" (one invested in stocks, the other in bonds, but
not mixed). He is quite creative in the types of bonds he uses in FPA New
Income; I haven't followed his equity management style much.
"Robert Rodriguez has accomplished the unheard-of-feat: driving staggering
returns in both a stock and a bond fund for more than two decades."
http://money.cnn.com/2008/04/01/pf/funds/best_fundmanager.moneymag/
Finally, a bond manager who has managed an equity fund (Fidelity Leveraged
Company - FLVCX) to great success for the past five years is Thomas
Soviero.
http://content.members.fidelity.com/mfl/manager/0,,316389873,00.html?refpr=%20mflib_sum9#Thomas%20Soviero
Whether they have the skills to allocate assets is a question I've
addressed
at best obliquely, since their funds don't make major ****fts in
allocations.
As to how to find these managers - read enough shareholder re****ts to
understand the managers. No simple screen comes to mind.
Mark Freeland
nNeEwTs@[EMAIL PROTECTED]
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