Bill Gross may have had a tough spring--and summer--but not all bond fund managers fell victim to fears of rising interesting rates.

Steve Walsh, PM of Western Asset Management [profile] Western Asset Total Return Unconstrained Fund, has weathered the storm well, and brought in the best risk-adjusted returns out of 17 smaller U.S. bond funds, Alexis Leondis of Bloomberg writes.

His secret? His fund doesn't have to track traditional benchmarks and can use hedging when the market does something unexpected.

Plenty of other fund gurus are noticing the advantage of "go-anywhere" funds in a time of rising rates. Leondis writes that BlackRock [profile] CEO Larry Fink said he has seen clients move to flexible bond strategies and Pimco's [profile] own unconstrained bond fund has beaten its flagship Pimco Total Return Fund.

To read more, click here.  

Edited by: Casey Quinlan


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