econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 23 February 2016

Barron's Article Features Hoisington And Hunt

Written by

Econintersect: Last week Van R. Hoisington and Lacy Hunt were featured in Barron's with an article that recounted their outlook for the bond market. The details of their analysis will be no surprise to GEI readers as they have been regular contributors several times a year since July 2011. The two manage very successful U.S. government bond portolios for Hoisington Investment Management (HIM) in Austin, Texas, with more than $5.5 billion in assets.

hoisington.hunt

Barron's provides some details about the investment management success that HIM has achieved by weighting their portfolios to the long end of the yield curve using extensively treasuries with durations of 20 years or more:

Hoisington has ridden the secular decline in government bond rates and the handsome concomitant rise in bond prices to annual compounded returns of 7.9%. This exceeds the annual returns of the S&P 500 over the same decade and lays waste to the performance of the bond industry bogey, the Barclays Capital Aggregate Bond Index, up just 4.4% a year in the same period. Moreover, the $375 million mutual fund that the company subadvises, the Wasatch-Hoisington U.S. Treasury (ticker: WHOSX), has finished in the first and 11th percentile of Morningstar's Long Government fund rankings for the past 10 and five years, respectively.

There have been rough patches along the way. Barron's mentions a 15% drawdown for Hoisington funds in the sharp bond collapse of 2013 when possible default by the U.S. government was alarming fear mongers. But in the following year the funds were up 30%. Such volatility is not the norm for U.S. treasuries but Lacy Hunt told Barron's:

"We tell potential clients - pension funds and the like - that if they can't embrace this volatility, not to put money with us. They must accept our macroeconomic view of long-term trends, namely a continuation of sluggish economic growth and limp inflation in the U.S. and around the globe, weighed down by surging levels of private and public debt. We've been playing these themes since 1990, to some outside derision on Wall Street and elsewhere, and our current analysis indicates that these trends will remain in force for some time to come."

The Barron's article reviews the economic factors that have led Hoisington and Hunt to expect lower treasury yields in the coming year. The quick review may be a worthwhile summary but the detailed analysis, always presented with copious graphical data, can be examined in detail in their GEI articles (list of recent articles below).


Recent Articles by Van R. Hoisington and Lacy Hunt:

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Joan Robinson’s Critique of Marginal Utility Theory
The Truth About Trade Agreements - and Why We Need Them
News Blog
Putting Grassroots Terrorism In The Proper Perspective
Crude Oil Prices: "Random"? Hardly. The More Emotional The Market, The More Predictable It Is.
Infographic Of The Day: Job-Hopping
Early Headlines: Asia Stocks Up, Oil Firms, Russia's Big Oil Deal, Trump Will Stay In Business, Trump Menaces Drug Cos, Banks Rig Silver, Italy's 360B NPL, Iraq Has Oil Cut Problem, China Trade Improves And More
Goals Come With A Hefty Price Tag At The Emirates
Facebook Strongest On Home Ground
Defence Budgets Are Surging In The Baltic States
It's Been A Turbulent Start, But Juno Is Now Delivering Spectacular Insights Into Jupiter
The World's Most Reputable Cities
What We Read Today 07 December 2016
October 2016 Consumer Credit Headlines Say Year-Over-Year Growth Rate Declined
Disabled Veteran And His Service Dog Get Job At Hardware Store
October 2016 JOLTS Job Openings Rate Shows Insignificant Year-over-Year Growth
Investing Blog
Trumpsternomics And Economic Growth
The Real 401k Plan Manager 07 May 2016
Opinion Blog
Italy Confronts The European Elite
The US Government Needs To Spend More
Precious Metals Blog
Silver Prices Rebounded Today: Where They Are Headed
Live Markets
07Dec2016 Market Close: Wall Street Records New Highs, Health-Care Stocks Tumble, Crude Prices Stall At $50 Handle, New Fears Of A Correction Are Looming
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government



Crowdfunding ....






























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved