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Turnaround stars: top managers since the US downgrade revealed

Turnaround stars: top managers since the US downgrade revealed

Turning crisis into an opportunity is a key trait in most lines of work, but which US equity and bond managers have successfully turned the US downgrade to their favour?

With PIMCO’s bond king Bill Gross voicing concerns over a further US downgrade, Citywire Global looks at the best performing managers since Standard & Poor’s unprecedented decision to relieve the US of its AAA credit rating.

Looking at the six months prior to the downgrade on August 8 and the performance of managers in the six months since, there are some notable stand-out performers in both US equities and US bonds who have shot up the Citywire rankings by 75 places or more.

Bonds

Fund manager Fund Rankings rise
Kevin Egan Invesco US Senior Loan Fund +86
Richard Hsu/Madeline Lam Franklin Floating Rate AX +85
Dan Fuss/Kathleen Gaffney/Matthew Eagan/Elaine M. Stokes Loomis Sayles Multisector Income Fund +79

Bonds stand-out performer

Fund manager: Kevin Egan

Fund: Invesco US Senior Loan Fund A USD

Leading the charge in the much-changed US bond sector is Invesco’s Kevin Egan, who jumped 86 places in the sector from the downgrade in August 2011 to the end of March this year.

Affected by swings in market appetite, Egan said at the turn of the year he anticipated strong performance in 2012 driven by historically low interest rates in the US, slow but continued growth and low corporate default rates.

Egan has run the $104 million Luxembourg-domiciled fund since its launch in August 2006. The main aim of the fund is to invest in adjustable rate senior loans, which have interest rates floating at a spread above LIBOR, and are issued by companies from the US and Canada.

Equities

Fund manager Fund Rankings rise
Guillaume Nicoulaud US Opera C +388
Thierry Combes R Conviction USA +365
Scott Wallace AllianceBernstein-American Growth +288
Béatrice Philippe/John Conti PIM America FCP +199
Alex Motola OYSTER US Dynamic +153

Equities stand-out performer

Fund manager: Guillaume Nicoulaud*,

Fund: US Opera C

Nicoulaud is an interesting stand out for more than one reason. The French fund manager, who has undergone a huge uptake in fortunes since the US downgrade, opted to step down from his quant-driven US Opera fund at the start of March.

This large-cap, value fund operates a relatively high conviction approach and previously topped the Citywire analysis for the best performing fund manager since Lehman's collapsed. This could indicate Nicoulaud has a knack for investing impressively in the wake of major macro-financial news.

He previously told Citywire Global how he focused on high risk premium stocks and aimed to invest in stocks which other managers would not touch.

Nicoulaud was replaced on the fund by former quant trader Guillaume Garchery and global macro strategist and fund manager Emmanuel Faik.

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Related Fund Managers

Richard Hsu
Richard Hsu
246/342 in Mixed Assets - Balanced USD (Performance over 3 months) Average Total Return: 1.98%
Kevin Egan
Kevin Egan
69/100 in Bonds - Floating Rate Notes (Performance over 3 years) Average Total Return: 10.01%
Madeline Lam
Madeline Lam
73/100 in Bonds - Floating Rate Notes (Performance over 3 years) Average Total Return: 9.78%
Kathleen Gaffney
Kathleen Gaffney
99/271 in Bonds - US Dollar (Performance over 3 years) Average Total Return: 8.53%
Dan Fuss
Dan Fuss
61/171 in Bonds - Global High Yield (Performance over 3 years) Average Total Return: 12.72%
Elaine M. Stokes
Elaine M. Stokes
62/171 in Bonds - Global High Yield (Performance over 3 years) Average Total Return: 12.72%
Matthew Eagan
Matthew Eagan
43/72 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 1.60%
William H Gross
William H Gross
65/72 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: -1.59%
Guillaume Nicoulaud
Guillaume Nicoulaud
1186/1235 in Equity - US (Performance over 3 years) Average Total Return: 9.02%
Thierry Combes
Thierry Combes
1150/1235 in Equity - US (Performance over 3 years) Average Total Return: 12.03%
Béatrice Philippe
Béatrice Philippe
1223/1235 in Equity - US (Performance over 3 years) Average Total Return: -0.90%
Guillaume Garchery
Guillaume Garchery
Emmanuelle Faik
Emmanuelle Faik
Scott Wallace
Scott Wallace
John Conti
John Conti
Alex Motola
Alex Motola
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