J.P. Morgan Asset Management's Strategic Income Opportunities Fund marks a shift in the way mutual fund managers respond to tough bond markets, reports the WSJ Fund Track.

Among the fund's strategies is the ability to sell short along with it not being tied to the weightings of a broad index. That means William Eigen, the funds PM, is free to only make bets where he believes the payoffs will outweigh the risks. If he sees few opportunities, he is also free to hold cash.

Last year the fund was up to 85 percent cash (it is less than half in cash now). Nearly one third of the funds positions are shorts.

Eigen is head of absolute return and opportunistic fixed-income strategies at J.P Morgan Asset Management and has experience as a hedge fund manager.

The article does not provide other examples of this type of fixed income fund. 

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