Top BlackRock Fund Says ‘Cash Is King’ on High Recession Risk
- Trigo Paz trimmed high-yield bond bets before virus worsened
- His BlackRock fund has topped 97% of peers this year
Photographer: Andrew Harrer/Bloomberg
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A fund that loaded up on risky debt in 2019 is dodging the worst of this year’s market chaos with a very different mantra: Cash is king.
Sergio Trigo Paz, who helps oversee the $1.6 billion BlackRock Strategic Funds - Emerging Markets Flexi Dynamic Bond Fund, said he boosted the portfolio’s cash holdings to 20% by early February while trimming positions in high-yield bonds as the coronavirus outbreak in China worsened.