Francis Rodilosso’s fund of fallen angels buys what others have to sell and sells what others have to buy.
Are you prepared to bet against the market—indeed, against your instincts? Try doing this: At a time when a recession seems imminent and interest rates are rising, invest in junk bonds.
Francis Rodilosso runs the Van Eck Fallen Angel High Yield Bond ETF. For this $2.8 billion portfolio, he mechanically buys bonds as soon as they get downgraded from high-quality to junk and sells any that get upgraded from junk to high-quality. This is precisely the opposite of what any prudent manager of an “investment grade” bond portfolio does.
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