Navy Career
Fuss, who has been at Loomis Sayles since 1976, works in a corner office with a view of Boston Harbor. His walls are decorated with pictures of navy vessels, including two that depict aircraft carriers. Fuss served as a signal officer on the carrier USS Saratoga during his stint with the U.S. Navy from 1955 to 1958. His conversation is peppered with analogies to aircraft carriers and how navigating the bond market is similar to landing planes on a flight deck.
Fuss runs the morning meeting of Loomis Sayles’ fixed- income department, which is attended by about 100 people. He maintains a busy speaking and travel schedule. In December, he will make his second trip to Asia this year. In 2000, Fuss was inducted into the Fixed Income Analysts Society’s Hall of Fame.
“I enjoy what I do,” he said. “It gives me enormous energy.”
Fuss’ experience did not prepare him for September 2008, when the failure of Lehman Brothers Holdings Inc. triggered a freeze-up of financial markets. Loomis Sayles Bond fell 18 percent in the month following Lehman’s Sept. 15 collapse.
“Did I see it coming? No,” said Fuss. “But once it happened did I understand where we were? Yes.”
Morgan Stanley
Fuss started buying beaten-down bonds in October and November of 2008. Heebner recalls meeting Fuss in early 2009 and comparing notes on New York-based Morgan Stanley, whose bonds were yielding 10 percent at the time.
“We both agreed that if the company didn’t go broke, Morgan Stanley was a helluva buy,” said Heebner.
The yield on Morgan Stanley’s 4.75 percent subordinated security that matures April 2014 topped 10 percent in March 2009, according to data compiled by Bloomberg. The security, a holding of Loomis Sayles Bond Fund, gained 29 percent between March 31 and Dec. 31 of 2009, according data compiled by Bloomberg.