Friday, October 18 08:30:09
The second biggest holder of Irish bonds has reduced its disclosed holdings three years after swooping in on the eve of the bailout. Daniel Fuss's Loomis Sayles and Co reduced its Irish debt holding by over 30pc in August, according to figures compiled by Bloomberg. Boston-based Loomis switched places as the second-biggest disclosed holder of Irish bonds with French investor Carmignac Gestion, the filings show.
Some of those who dipped their toe into the bond market when it was at depressed levels are reaping some of the benefits now. Loomis anticipated Ireland's recovery and the European Central Bank's willingness to keep the euro region together. Fuss, who managed the two best large US bond funds over the past ten years, began buying Irish debt in the third quarter of 2010, filings show, as Irish bonds yields soared and the country's banks came close to collapse.
Quick financial sacrifices to resolve debt problems helped Ireland navigate the crisis, Brian Kennedy, a Loomis Sayles portfolio manager who works with Fuss, said in an e-mail last month. The gain on some bonds has been about 50pc, he said. Irish bonds, which dropped by 7.2pc in the fourth quarter of 2010, jumped 11pc in 2011, according to the Bloomberg Ireland Sovereign Bond Index. They soared 30pc in 2012 and rose by 5.7pc in the first half of this year.
Investors who "took on board the credibility of the story in 2011 made a lot of money by buying our bonds in the secondary market,' John Corrigan, chief executive officer of the National Treasury Management Agency, told reporters in Dublin earlier this month. "The people who didn't are regretting it." Carmignac Gestion, run by Edouard Carmignac, more than doubled its disclosed holdings of 3.9pc bonds that mature in March 2023, adding to its portfolio of 5.5pc debts due in October 2017, the Bloomberg data show.
The firm is now second only to Franklin Resources as the biggest disclosed owner of Irish bonds according to RTE News.