Long short fixed income in a challenging 2014

Ryan Hughes argues the case for long/short rather than long only strategies being the only way to play fixed interest in what will be a challenging 2014 for the asset class.

Long short fixed income in a challenging 2014

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Hughes confirmed that the Apollo Multi-Asset funds have had no long-only exposure to fixed interest since May last year and is not considering changing this any time soon.
 
“There will continue to be a demand for fixed interest as clients still need income, but the way we think about fixed interest is as a total return asset class,” he said.
 
“We invest in absolute fixed income, from absolute return government bonds to absolute return high yield through a combination of long/short strategies. This will be a much tougher year for fixed interest and we would like to smooth away some of the volatility that we don’t think is costing us any of the upside.”
 
 
and here for why he thinks property is good for a 6% net return this year.

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