"Putnam’s David Glancy the Boston Capital fund manager of 2013; Putnam’s Glancy steers his two funds to stellar earnings of 43.6% and 34.8%" by Steven Syre | Globe Staff, December 31, 2013
Mutual fund managers who buy and sell stocks for a living ran into a problem this year. Did they have enough buckets for all the money they were making?
Wow, those are better numbers than Madoff returns.
Related(?): "A strong stock market and better business climate have continued to concentrate American wealth in the top 1 percent of earners."
A great problem and real funny.
*******************
Both Putnam Investments funds focus on businesses that carry a lot of debt. David Glancy’s equity fund is just stocks of debt-laden companies, while the Capital Spectrum fund invests in stocks, junk bonds, and other securities issued by such companies.
The world of high-leverage stocks and junk bonds can be a volatile, risky place. The idea: Make lots of money when times are good and try not to lose your shirt when markets go south. The past year has been a time for opportunity.
Translation: State Street and Wall Street are back to bu$ine$$ as usual despite Dodd-Frank and more regulation, and when times are bad don't worry, the government will be on the way with another bailout. We've seen this movie before.
“The history of leveraged finance is that it’s a really good movie,” says Glancy. “There are great stories, great disasters.”
I don't want to $ee anymore of this $hit-slop!
*******************
Glancy’s funds defy any standard investment description. He owns stocks of some companies that do not fit the high-leverage profile, simply because he considers them undervalued….
Both funds are permitted to short securities — to bet that those investments will lose value in the future — though neither do much of that now.
So who is his driver?!!!
What really makes Glancy’s Putnam funds look different are the huge piles of cash they hold….
See: Corporations Sitting on $1.8 Trillion in Cold Hard Cash
So that is where all the money has gone.
All that cash provides safety and investment flexibility, but it dampens returns when markets are hot. Both funds would have earned a lot more this year if they had been fully invested.
“I don’t have a big cash balance just to say I have it,” says Glancy. “I feel better about my ability to engage an investment opportunity when I don’t have to sell something” else to buy it….
Glancy, 52, has lots of experience in the world of high leverage. He started his career as an accountant but moved on to Standard & Poor’s to analyze investments during the first junk bond gold rush of the 1980s….
And now there is another one!
--more--"
Only in my propaganda pre$$ is $cum such a hero!
