David Glancy on his largest portfolio positions and outlook for U.s. growth potential

Manager expertise

Putnam's David Glancy has focused much of his career in leveraged-company investing, with over 25 years of experience in the asset class.

Unconstrained approach

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.

Concentrated portfolio

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.

Diversification potential

Putnam Spectrum Funds' unique strategy and focus on leveraged companies can make them a diversifying complement to core portfolio holdings.

Putnam Capital Spectrum Fund

Putnam Capital Spectrum FundInvests throughout the capital structure, seeking total return from debt and equity securities.

Seeks total return

Invests in equity securities, as well as fixed- and floating-rate income securities of leveraged companies

Asset class diversification can help to reduce volatility

Total return opportunities include income from high-yield bonds and bank loans

Putnam Equity Spectrum Fund

Focuses on equity securities with capital appreciation potential.

Seeks capital appreciation

Invests in equity securities of leveraged companies

Focuses on equities that offer greater potential returns and greater potential volatility

Pursues capital appreciation

« Why might leveraged-company investing be a good idea?

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.