What are some of the best ideas today? One answer is leveraged companies.
Putnam's David Glancy is a long-time specialist in leveraged-company investing, with 25 years of experience in the asset class.
Putnam Spectrum Funds can invest across the capital structure – going long or short on specific securities – pursuing a combination of capital appreciation and current income.
Less can sometimes be more. David Glancy's conviction weights portfolio positions in Putnam Spectrum Funds.
Ability to go to cash
The funds have the latitude to allocate a large weighting to cash. A key benefit of this is that it allows David Glancy to establish large positions quickly when his conviction is high.
Putnam Spectrum Funds' unique strategy and focus on leveraged companies can make them a diversifying complement to core portfolio holdings.
For every 1% change in interest rates, a bond's price is expected to move 1% in the opposite direction per year of duration. In other words, the higher a bond's duration, the more sensitive it is to interest-rate movements. For investors who own individual bonds and are willing to hold them until maturity, duration may not be much of a concern. But investors in a government- or index-oriented portfolio who need even a small degree of liquidity should pay careful attention to the level of interest-rate risk they're assuming.
Sources: U.S. Department of the Treasury, Barclays, Putnam Research, as of 3/31/13. ?The Barclays U.S. Aggregate Bond Index is an unmanaged index of U.S. investment-grade fixed-income securities. You cannot invest directly in an index. For illustrative purposes only. Performance of Putnam funds will differ.