In an article posted on its website November 18, financial news powerhouse Bloomberg focused on the accomplishments of College of Engineering alumnus Mark Notkin in a long article with the headline “Fidelity's Junk-Bond King Notkin Adds Stocks as Debt Rally Dies.” The high-yield mutual fund managed by Notkin, the $12.8 billion Fidelity Capital & Income Fund, beat all rivals over the past five years, but now he says the rally in junk bonds is over and stocks are a better buy. Read the article.
Notkin, according to the Bloomberg article, is putting more money into equities and leveraged loans while cutting back on high-yield bonds, which have soared 80 percent since the start of 2009. “I don’t see the value in the high-yield market,” Notkin said in an interview with Bloomberg’s Charles Stein. “You are not being paid to take risk.”
Notkin, 46, earned his B.S. degree in Mechanical Engineering from UMass Amherst in 1986. He joined Fidelity in 1994 as a high-yield analyst covering broadcasting, gaming, and lodging. He took over the Fidelity Capital & Income Fund in July 2003. It’s the third-largest U.S. junk-bond fund. (November 2010)