Bonds

CI veteran launches bond fund
Andrew Willis, 01/12/08 at 3:59 PM EST

In a move the speaks to contrarian instincts and a healthy dose of self confidence, bond fund manager Matthew Shandro launched a hedge fund on Monday.
Mr. Shandro founded Fulcra Asset Management in Vancouver, a fund “dedicated to the absolute return performance of clients' assets.” It's early days, and the company doesn't have a web site up yet.
An award-winning portfolio manager at CI Financial, where he ran income funds, and former leading light at Great Pacific Capital, a subsidiary of Jim Pattison Industries Ltd., Mr. Shandro plans to focus on finding “out of favour” opportunities in the bond market. His overall thesis, with which it is hard to argue, is that fixed income markets offer far better bargains, with far less risk, than unpredictable equity markets.
“We are focused on finding investments we can understand and where free cash flow is reality, not a myth,” said Mr. Shandro in a news release to announce his new firm. “By exercising this discipline we can take advantage of inefficiencies in fixed income markets, where many investors place too much reliance on the rating agencies.”