What are some of the best ideas today? One answer is leveraged companies.
Putnam's David Glancy has focused much of his career 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.
Diversification does not assure a profit or protect against loss. It is possible to lose money in a diversified portfolio.Consider these risks before investing: Investments in small and/or midsize companies increase the risk of greater price fluctuations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Our focus on leveraged companies and the funds' "non-diversified" status can increase the funds' vulnerability to these factors. The use of short selling may increase these risks. Stock prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer company or industry. You can lose money by investing in the funds. For Capital Spectrum, these risks also apply: Lower-rated bonds may offer higher yields in return for more risk. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. Bond investments are subject to interest-rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments). Interest-rate risk is greater for longer-term bonds, and credit risk is greater for below-investment-grade bonds. Unlike bonds, funds that invest in bonds have fees and expenses. Our use of short selling may increase these risks. Mortgage-backed securities are subject to prepayment risk and the risk that they may increase in value less when interest rates decline and decline in value more when interest rates rise. Stock and bond prices may fall or fail to rise over time for several reasons, including general financial market conditions and factors related to a specific issuer or industry.