Economics
Best Junk Bond Manager of Decade Says Recession Fears Overdone
- Fidelity's Notkin sees mid-to-high single-digit returns
- Calls high-yield bonds `fairly valued,' stocks a better buy
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Mark Notkin expected the rebound in high-yield bonds. The earlier plunge in the first part of the year is what didn’t make sense to him.
Notkin, whose $9.7 billion Fidelity Capital & Income Fund has outperformed all peers over the past decade, didn’t flinch as high-yield bond prices tumbled in January and early February. While investors feared that declining oil prices and troubles in Europe and Asia might disrupt growth in the U.S., Notkin found little evidence to support the gloom.