Go-Anywhere Bond Funds Stage a Comeback as Bold Bets Pay Off

After being “out of vogue” for years, Ariel Bezalel says his bond strategy is back in the spotlight. The fund manager has just wrapped up a tour across South America, where his message was straightforward: in a world of tremendous geopolitical volatility, flexibility pays.

In recent weeks, Jupiter Asset Management’s Bezalel has snapped up the debt of a Bahraini oil refinery, shorted European high-yield credit, wagered against interest-rate hikes from the Bank of England, and piled into Brazilian local-currency bonds. The wide-ranging bets have delivered a near 2% return over the past month — putting the fund ahead of most rivals.