Harte works to revive performance after early duration call

Colin Harte is working to turn around performance on the Barings Absolute Return Global Bond trust after an early short duration call caused a negative return over the past year.

Harte, who manages £315m in total, says he is sticking with the bet as interest rates look set to rise this year. “In the summer of last year, as bond yields fell rapidly and the market was looking expensive, we built an aggressive short duration position of minus five and a half years, betting on a rise in interest rates. “In hindsight, it was probably too early to make that duration position, but we think it was the correct call. Performance took a hit in 2010 but we are sticking to our guns as we believe interest rates will rise. In the next 12 to 18 months we will be vindicated,” ...