“They are the riskiest place to be if you’re concerned with, in our mind, the longer-term trend,” he said about Treasuries in May 2010.
Fuss last week said 10-year Treasury yields, now at about 2.6 percent, could reach 4.25 percent in the current cycle, without specifying when that would happen.
Rising Rates
“Our view continues to be that interest rates will continue to advance higher on a secular basis and we must position the portfolio accordingly for our investors,” Eagan wrote in an e-mail.
Fuss has some history with rising rates. In the first few decades of his career, from 1958 to 1981, interest rates generally moved higher, he said.
“What works in that kind of environment?” he asked, before answering his own question. “Individual bond picking and diversification.”
Long careers are the norm in the Fuss family. His father worked until he was 87. His grandfather worked in a Wisconsin tavern until the age of 95. Fuss told the Boston Globe last year that he planned to work at least another 30 years.
Fuss put it this way last week: “I have no plans to ride off into the sunset.”