David Kotok and Bond-Market Alpha
This week on our Masters in Business radio podcast, we speak with David Kotok of Cumberland Advisors.
Kotok co-founded the firm, which now manages $2.3 billion, in 1973. He discussed why it's easier for actively managed bond funds to deliver market-beating returns, or so-called alpha, than for actively managed equity funds. He traces it to greater volatility in bonds. Kotok, who was in the World Trade Center on Sept. 11, is the author of four books, including the bestselling “From Bear to Bull with ETFs” and the forthcoming “Adventures in Muniland.”
Next week we speak with Howard Marks, co-founder of Oaktree Capital Group.
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