Top 10 Paper Companies To Watch For 2015
From the inaptly named trading floor of Van Hoisington's investment company in Austin, there's a commanding view of the Texas Hill Country. It's a nice diversion, since not much trading takes place at $5 billion-in-assets Hoisington Investment Management.
Hoisington, 73, has kept his clients almost entirely in long-term bonds, specifically 25- to 30-year Treasurys, since the Bush Administration. The first one. For a quarter-century he's been the Henry Ford of bond investing, offering customers anything they want as long as it's long-term Treasurys, and in the process has earned enough to buy himself a couple of Austin mansions and a ranch outside the Texas capitol.
In the early summer of 2007, when FORBES last spoke with Hoisington, he was predicting a severe recession and urging investors to load up on long-term zero-coupon Treasurys. As the stock market fell more than 30%, his clients made a quick 15%. Later in 2008, when "the Fed started ramping up its balance sheet by a trillion dollars at a whack and everybody assumed inflation would go up," he got nervous about his position, he now admits. Nevertheless, he stayed the course, and by the end of 2011 his clients were up 66%.
True, last year Hoisington clients lost 16.7% after fees. But they're up almost 12% so far this year, bringing their three-year annual compound return to 10.5%, compared with 14.7% for the Standard & Poor's 500. And over 20 years they've done even better comparatively, with a compound return of 8.2%, only slightly less than the 9.5% for the S&P. Now Hoisington plans to keep clients in long bonds a while longer.
No comments:
Post a Comment