Manager reassessment of SocGen portfolio pays off

Isaac and Gallenga had to radically change long-term views in mid 2007, a strategy that saw them return 9% (Libor plus 3%) in 2008

Société Générale Total Return Bond was launched in May 2007, just before the Western financial world entered its unprecedented credit crisis. On launch Gareth Isaac and co-manager Lorenzo Gallenga set out a number of long-term macroeconomic views based on the current economic climate of rising yields backed by growing economies and tightening spreads. In early July, as the credit crunch hit and began to change the face of the financial markets and with the fund still in its infancy, Isaac says he quickly realised he needed to reassess the portfolio's long-term view. "In May we had sta...