This statistic, I believe, highlights the task facing most alternative fund managers is not far short of outright impossible at times.
We do remain open to re-evaluating our stance should the market dynamics change materially, particularly with quantitative easing now entering the twilight of its existence.
This does, of course, leave some questions unanswered with regard to the future of bond markets, and this policy shift may play into the hands of the ‘alternatives’.
However, our belief is that there will be little impingement at the short end of the curve, while paired with our active stance in managing both the duration and the credit quality of our bonds as we see appropriate, we are unlikely to revisit alternatives in a meaningful way anytime soon.
James Sullivan is managing director and fund manager at Miton Optimal
