Short-dated bet benefits New Star's Gledhill

New Star manager Gledhill expects bond markets may take the next 18 months to pick up but believes his portfolio can withstand difficulties

Almost a year into his role as New Star's head of fixed income, James Gledhill's team has at last been vindicated for its bet on shorter duration bonds. Gledhill's £374.1m High Yield Bond fund missed out on gains to be made from last year's rally but said his less conservative call on inflation has served him well. "We made two relatively small bets on markets that moved atypically - we were short of government bond risk and short duration because of our expectation on the interest rate risk," he said. "It was not necessarily a new position, but one we had held for the last four or fi...