Dan Fuss is an American businessman who has earned the nickname "The Warren Buffett of Bonds." He is known for his brilliance in the management of bond funds and has earned the reputation as one of the best investors in the world. Here are 20 things about him that you may not have previously known, that you might find inspirational.
1. Mr. Fuss is an executive at Loomis, Sayles & Company
Loomis, Sayles & Company is an $18.5 billion bond fund. Mr. Fuss is the vice-chairman of the firm. He works with Matt Eagan in the management of the fund and is still going strong even though he's in his 80s. Long after some executives have retired from the business, he is at work doing his job as well as he ever has. He is an asset to the firm, and his name alone carries a lot of weight in the investment circles.
2. He is mindful of existential threats in the world
Dan Fuss has concerns about changes in the environment and how they will impact the planet. He sees climate change as a building crisis that is leading to a variety of issues and in addition, he has concerns about the clashes occurring between the United States and China within trading. He sees the issues which have developed between two of the greatest superpowers on the planet and he understands the potential impact upon investing, which is what he does for Loomis, Sayles & Company.
3. He's been buying up AT&T stock
Mr. Fuss' concerns over the tenuous situations happening in the world around us have led to his decision to buy up AT&T stock. He is seeing that this provides the best opportunity for generating higher dividend yields, even than the bonds held by Loomis, Sayles & Company. AT&T was selling long-term bonds below face value, but they were unable to purchase enough of the bonds at the right price, however, he went with teh purchase of stock with a common yield that is a little better than 6%, which is 1.6% better than the bond performance, making it an attractive option.
4. Dan sees the bigger picture
When Daniel Fuss conducts his analysis for the firm that he is involved with he looks at the projections of a market from the perspective of the bigger picture and long term predictions. For example, he is monitoring the effects of climate change on the earth to determine how it is currently affecting sectors of the economy, as well as how it is likely to impact the markets in the short and long term. He considers increased rainfall and its effects on farmers, and how this, in turn, impacts other providers who are all involved in a massive supply chain, that are also affected by the crises. These include financial institutions that finance farmers, equipment manufacturers, and so forth.
5. He recently won a prestigious award
In May of 2019, Dan Fuss was honored for his outstanding performance in the management of Loomis Sayles' bond. He was awarded the Morningstar Outstanding Portfolio Manager of 2019 award. We learned that when he accepted the award, he did so with a little humor and a lot of humility. Mr. Fuss is a veteran in the industry and he has spent the past 60 years of his life in bond fund management, and he has built an impressive track record of successes.
6. He gives credit where it is due
Outward evidence of Dan Fuss' humility was evidenced when he received the Morningstar award. Instead of discussing what he did to earn the award and his own business and investing acumen, instead, he talked about the rest of the team that helped to make the firm so very successful. Fuss is a Citywire AA-rated manager, but he indicated that the award really should have gone to the entire group comprised of Brian Kennedy, Matthew Eagan, and Elaine Stokes. Dan is a truly humble man who doesn't take credit for the work of others, and from what we've seen, he doesn't seek recognition for his many accomplishments.
7. Dan Fuss is former Navy
Mr. Fuss is a veteran of the United States military. In 1955 he enlisted in the Navy and he served until 1959. While there he gained experience in operating an aircraft carrier and he learned in that environment that it takes teamwork to become successful in just about any endeavor that is undertaken. He understands that everyone has their part to play and that it requires a great deal of discipline because investment management is a fairly high-risk occupation and attention to detail is vital. He was a lieutenant in the Navy.
8. Dan Fuss has a winning formula for success
Experts in the field of manager research in North America reviewed Mr. Fuss' record and business style. He observes a few basic tenets in his management strategy that have resulted in decades of success in the business of investing. He is aggressive, and often contrarian, and he is also a value-driven individual and these are the characteristics of his leadership style that has led to his long-term effectiveness at the job that he has performed for decades.
9. He's analytical and thoughtful
Fuss puts a lot of time and thought into the investment that he advises. He doesn't go after bonds that are cheap unless there is a high potential for future yield, particularly when there is turmoil in the market. He carefully researches a company for investment and analyzes it in accordance with the set criteria that he has established. If it meets the criteria, Fuss will go against what others advise and follow through on the investment when times are tough. He sees some situations far differently than others and for the most part, he has been right in his assessments.
10. He doesn't see himself as aggressive
Mr. Fuss has his own definitions when it comes to describing investment strategies and the traits and habits of investors. He disagrees with those who view his investment approach as being aggressive. He points out that this definition is dependent on how the individual defines the term risk as it applies in each situation. He prefers to know the risks involved in each situation and being prepared to move when it becomes apparent that the timing is right.
11. Dan Fuss is a pioneer
It hs recently been pointed out that Dan fuss has made some significant contributions to the approach to fixed-income defining LSBDX. Since 1991 he constructed and implemented a multisector approach which has become the signature strategy of the firm. He has worked with the CIO of the company to codify the company's investment process and he is also credited with the development of a process for the next generation of bond investors at the firm. He has set the strategy in place that will guide and direct future investors for the company after he has departed.
12. Dan Fuss has helped develop the Loomis, Sayles ethos.
There are few executives that have the influence we've seen exerted by Dan Fuss. He knows what he is talking about and he is a brilliant and highly intellectual strategic planner. He has helped to develop the firm's team of capable and competent professionals as well as the products that are consistent with teh philosophy of the company. He knows how to bring the right people together and how to set plans in place that will continue to move the company forward in the decades to come.
13. Mr. Fuss has won several awards
The Morningstar award was only the most recent that Dan Fuss has been honored with. He has spent 61 years in the investment business and he was also honored with a Morningstar Fund Manager of the Year award in 2009. In 2012 he was the recipient of the Lipper Excellence in Investing Award, as well as the Institutional Investor Money Management Lifetime Achievement Award that same year. In 2013, he was given the CFA Society of Milwaukee Lifetime Achievement Award.
14. Dan is also a Hall of Famer
It seems that there is a Hall of Fame for nearly every profession under the sun and for investors, it is the Fixed Income Analysts Society's Hall of Fame. Mr. Fuss was inducted into this prestigious society as a member in 2000. The honor was bestowed upon him in recognition of the many contributions that he has made to advance the analysis of fixed income portfolios and securities.
15. Fuss He serves as president of the society
Mr. Fuss has served in some impressive positions in investment-related organizations. Dan was the president of the CFA Society Boston chapter. He has served in this capacity on two different occasions.
16. He is highly educated
Prior to embarking on his career in the investment industry, Dan Fuss graduated from high school, then went to college. He attended Marquette University where he earned his bachelor's of science degree. After completing his undergraduate studies he continued forward to earn his MBA from the same institution. He spent three years in the Navy, then embarked on his career in finance in the private sector.
17. His wife looks out for his best interests
Mr. Fuss is 81 years old and he has a desire to parachute from an airplane. This is something that he probably would have already done if it wasn't for his wife Rosemary. She has threatened to have him thrown into jail if he does. While we're fairly certain that the comment was a humorous remark she is serious about keeping her husband from doing something dangerous. When it comes to business however, he is one his own and he continues to function in the same way that he always has. He is fortunate to still have his partner by his side at work as well as those who work with him at Loomis, Sayles.
18. Dan Fuss is likely to continue working as long as possible
So far, Mr. Fuss has no plans for retirement. He is in his eighties but longevity runs in his family. His grandfather immigrated to the United States from Germany, prior to the civil war. He established a tavern in the state of Wisconsin and the man was in his 80s when he did so. He also worked at his tavern until the age of 95. Mr. Fuss appears to be taking a leaf out of his grandfather's book because he is still going strong. He has set the company up to continue in his absence at such time that he does leave for one reason or another, but at this point in time there isn't a single thought about leaving.
19. He still leads the morning meetings at Loomis, Sayler
Although Mr. Fuss is getting older he hasn't shucked any of his responsibilities at the company. He still leads the morning meetings that often have up to 90 people in attendance. He declared that when this is something that he can no longer perform successfully, he will know that it is time to step down. The meetings can become intense and he uses humor as a diffuser to get the group back on track when the situation gets too heated.
20. He managed Yale's endowment fund prior to Loomis, Sayler & Company
Before Mr. Daniel Fuss began his 61-year career in the investment industry gaining experience in a variety of work settings. He worked for a firm called First Wisconsin Trust as an investment manager, then at Continental Illinois National Bank Trust service as Vice-president, Endowment Research Corporation in management of the Yale endowment portfolio. After this he moved to Boston Company AM in 1976 as a managing partner, then moving on to Loomis Sayles as vice-chairman, then as Executive Vice President.
Written by Allen Lee
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