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Dan Ivascyn continues steady purchases of Pimco Income Fund he manages
the closed-end version of course. here is the Nov 15th SEC filing: http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8571196 of course the CEF universe got clobbered last week and many premium plays moved down 5-15%. he came right on the bottom to scoop the shares. i can't quite accomplish similar perfection in timing.
A very confusing set of filings that ends up being shown as a sale here. Will have to dig into this later. I can't see why it would be shown as a sale.
I'm thinking, at best, PONDX treads water going forward. Capital appreciation has been the "wind beneath its sails" as interest rates have moved downward. Japan is about to go negative with their rates so there may still be some continued opportunity for capital appreciation in bond funds like PONDX.
The yeild on PONDX is 6%ish...seems like a reasonable return for a multisector bond fund. Capital appreciation is another matter. Income fund managers like Ivanscyn will soon be tested with respect to their ability to navigate a raising interest rate environment and produce positive real returns. Instruments like floating rate bank loans, short term / high yield corporates, convertible securities, TIPS, maybe even dividend paying stocks might soon replace "what's working now". How do these bond managers reverse course without losing their mojo for a period of time? Low tide becomes slack tide before the water rising again.
An article from Forbes back in 2010 discussed some of these raising rate options.
Reply to @bee: Mayber PONDX needs to increase their exposure to non-agency RMBS. They are still far under fair value if the commentary below from Angel Oak is to be believed. I've recently added ANGIX (no minimum at Scottrade) something I should have done long ago but was too busy with junk bonds at the time. So far the bandwagon keeps rolling for hi-yield munis ala ABTYX which unfortunately is the smallest of my positions. Holding my breath for what January may bring in bondland as trends are often reversed in the New Year. Still, even if someday it is game over for Treasuries that doesn't mean all areas of bondville will succumb.
Reply to @Hiyield007: they filed a 4a - amendment - the next day to correct to a purchase. he owns over$5mil of this stuff now, and that's a fairly new fund.
Comments
Mike_E
A very confusing set of filings that ends up being shown as a sale here. Will have to dig into this later. I can't see why it would be shown as a sale.
The yeild on PONDX is 6%ish...seems like a reasonable return for a multisector bond fund. Capital appreciation is another matter. Income fund managers like Ivanscyn will soon be tested with respect to their ability to navigate a raising interest rate environment and produce positive real returns. Instruments like floating rate bank loans, short term / high yield corporates, convertible securities, TIPS, maybe even dividend paying stocks might soon replace "what's working now". How do these bond managers reverse course without losing their mojo for a period of time? Low tide becomes slack tide before the water rising again.
An article from Forbes back in 2010 discussed some of these raising rate options.
how-to-protect-your-portfolio-from-rising-interest-rates
Dan Fuss is a guy we should be listening to:
4 investing guidelines from bond expert Dan Fuss:
What's the Fuss Dan?
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