Lamb argues that volatility has become an another word for predictability and says investors looking for low volatile returns going forward should avoid traditonal fixed income products because of current stretched valuations.
GAM has cut its exposure to these types of interest rate sensitive fixed income exposures in faovur of seeking out fund managers with expertise in areas like mortgage backed securities or subordinated bank debt.
Lamb says its expertsie in regulated absolute return products leads it to expect these kinds of allocations will give it the same measure of predictability as traditonal fixed income products but will lead to better returns.
