Money managers in bonds profit from a surge as stocks stall.Money managers in bonds profit from a surge as stocks stall The No. 1 money manager in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, in the second quarter of 1991 was Beverly Hills-based Financial Management Advisers, on a portfolio of high-yield bonds High-yield bond See: Junk bond high-yield bond See junk bond. , which have been recovering while the stock market rests. Tops among equity (stock) managers was Century City-based Kayne Anderson, which posted a 3.26 percent return in the quarter, quite good when compared with the Standard & Poor's 500 index, a broad measure of the stock market, which fell 0.23 percent in the period. Kayne Anderson employs a "rising dividend" strategy, said Stan Heller, vice president of marketing. "Among several other criteria, we invest in stocks that have increased their dividends in seven out of the last 10 years and have at least doubled their dividends in the last 10 years." Kayne Anderson also looks for companies without a lot of leverage, he said. The survey of leading money managers was performed by Robert Miller and Brian Caramadre in the Westlake Village offices of Prudential Securities. In the five-year annually compounded return category, the No. 1 manager was San Diego-based Brandes Investment Management, which reported a 20.8 percent return on a portfolio of foreign stocks in the five-year period ended June 30. An investor who left $1,000 with Brandes five years ago would have $2,576 today, before taxes and inflation are considered. In a close second place in the five-year category was the Century City-based Lippman, Scott & Associates, which reported a 19.81 percent return on an arbitrage arbitrage: see foreign exchange. arbitrage Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price portfolio invested in stocks and bonds of pending mergers and acquisitions. In the third spot was George Bjurman, a West Los Angeles-based money manager. Only 10 of the 22 equity portfolios outperformed the Standard & Poor's 500 index in the five-year category, a finding similar to many academic and industry studies that have found the stock market difficult to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. on a consistent basis. In the return-to-risk category, the No. 1 manager was San Diego-based William Mason There have been several notable people named William Mason, including (sorted by birthdate):
The return-to-risk category measures the degree of risk compared to the return of a portfolio. Risk is gauged by the amount of volatility in a portfolio's total value. Some portfolios have virtually no risk, or volatility, such as investments in short-term Treasury bills. Others have a lot of risk and gyrate gy·rate v. 1. To revolve around a fixed point or axis. 2. To revolve in or as if in a circle or spiral. adj. In rings; coiled or convoluted. wildly in value, such as those invested in small-capitalization growth stocks, junk bonds junk bond, a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history. or commodities. What is desired, of course, is a great deal of return for little risk -- "a sure thing." While sure things aren't common on Wall Street, the return-to-risk ratio quantifies the return a manager is generating relative to the risk in his or her portfolio. While the second quarter was pretty much treading treading a part of a restlessness syndrome or a neurosis in ruminants or horses; the patient repeatedly changes weight from one limb to the opposite of the pair, lifting the hoof slightly at each change; the action looks as though the patient is treading grapes to make wine. water for stock managers, there are the makings of a bull market, said Robert Miller of Prudential Securities. "We have low interest rates and inflation, and when the economy recovers we will have stronger earnings," said Miller. "It may be a buying opportunity right now." [Tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. Data Omitted] |
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