The (Bursting) of the Bond Manager Bubble by LST
US market history seems to be characterized by some form of hero worship at each point of the cycle. You know, the investment managers that the journalists, investment professionals, and (sometimes) general public drool over:
- 1980s – The “Corporate Raider”
- early/mid 1990s = the macro speculator / bond vigilantes
- mid/late 1990s = The Star Mutual Fund Manager and Venture Capitalists
- Early 2000s = Equity Short Sellers
- Mid 2000s = Real Estate and Private Equity “Moguls” … and “value investing”
- Late 2000s = Housing/Credit Short sellers
- Early 2010s = The Bond Fund Managers
If history is any guide, R.I.P. Star Bond Fund Managers (not just “high yield”). It was good while it lasted. It’s your turn to come back down to earth…for good.
