Bond Manager Stewart Cowley Hates His Job


But loves his paycheck.

Stewart Cowley manages $1.5 billion in the Old Mutual Global Strategic Bond Fund. One place he generally avoids investing that money: bonds….

"I'm the bond manager who doesn't like bonds," he says, sitting in the modern London headquarters of Old Mutual Global Investors, a unit of Old Mutual PLC, which is a venerable City institution with roots going back to 19th-century Cape Town, South Africa….

Mr. Cowley has gone into hyperdrive with a highly unorthodox strategy: He has taken large negative positions on major government bonds by "shorting" (or betting against) contracts tied to the bonds' future performance….

Mr. Cowley left academia for the City in 1987. Hearing tales of riches from an economist (who was also his band's drummer), he headed for the careers department at Oxford University and signed up for a job as a broker.

Stewart Cowley, the Bond-Fund Manager Who Can't Stand Bonds [WSJ]