Markets have gone through countless defining moments over the past century. In a new series, Loomis Sayles’ portfolio managers reflect on the market events they remember the most and the experiences that shaped them as investors.

Q: What market event had the greatest impact on your development as an investor and what lesson did you take away from it?

Matt Eagan, CFA, Head of the Full Discretion Team, Portfolio Manager
Market Memory: Looking back at my career I would probably say the global financial crisis (GFC) in 2008 shaped me the most as an investor along with the 1997 Asian financial crisis, which occurred early in my career here at Loomis Sayles. I remember watching Dan Fuss scoop up Asian bonds that were cheap. We were doing our due diligence, and the market seemed to be headed for disaster, yet Dan had a big smile on his face and was effectively saying, “Buy, buy!” That was when I really fell in love with Loomis Sayles; I knew that I would fit in with that kind of temperament.

Takeaway: My takeaway from these experiences is that markets can sometimes become far worse than you ever expected. You need to have a healthy appreciation for how quickly conditions can change and how critical it is to conduct thorough due diligence during those periods. The key is being able to take advantage of the opportunities during those market environments and having the fortitude to look beyond the catastrophe and buy when quality assets are trading at cheap levels.

Jennifer Thomas, Portfolio Manager, Structured Finance                                                               
Market Memory: The Structure Finance Team was built during the GFC, so both my career at Loomis Sayles and the development of the team itself were shaped by educating the firm about structured finance and identifying compelling opportunities. I remember when Alessandro Pagani, CFA, who is now head of the Structured Finance Team, first started this team. One of his first trades was purchasing Capital One credit cards at exceptionally wide spreads. I remember him going into Dan Fuss’s office to pitch the trade and explain the values he saw despite the uncertainty of the market environment during the GFC. In the end, the trade was a home run.  

Takeaway: It was an educational experience during a challenging time. One of the things I’ve always appreciated about the culture at Loomis Sayles is that everyone is willing to listen. There’s a shared mentality of “let’s learn together.” As a young associate at the time, having the opportunity to learn from the conversations that took place during a period of significant market turbulence was incredibly valuable. I learned how experienced investors thought through complex situations, approached opportunities and challenged one another’s ideas. Those discussions were critical to my development early in my career. To this day, they inspire me to keep digging deeper, continue learning and hopefully follow in their footsteps.

Peter Yanulis, Portfolio Manager, Alpha Strategies                                                           
Market Memory: I once heard Dan Fuss say, “Don’t sail in a boat that’s going to run over rocks.” This was a Navy-derived maxim that he learned in the 1950s being used to describe avoiding obvious risks in investing. When I joined Loomis Sayles in 2015, the market was still digesting the post-2008 realignment. Central banks were dominant, volatility was suppressed and credit was abundant, but shallow. This was a time that shaped me as an investor. I witnessed how quickly seemingly safe assets could turn dangerous when liquidity and sentiment shifted especially in emerging markets debt and corporate credit during the 2015-2016 commodity storm. We had this brief federal normalization scare. At the time I was a sovereign analyst covering Brazil during the Lava Jato corruption scandal, which reinforced the importance of understanding risk and remaining disciplined amid uncertainty.

Takeaway: That period taught me three lessons that still guide me as an investor today. The first is that price is the primary risk control. If you’re not paying attention to valuation, you’re sailing without a map. The second is that bottom-up credit research beats macro guesswork. You can’t rely on central banks to protect you forever. The third is that you want to avoid the boats that are clearly heading towards rocks. If corruption, weak governance or unsustainable leverage is becoming part of the story, don’t invest, no matter how attractive the yield is. These are the lessons that I think align with Dan Fuss’s broader philosophy. He’s a bargain hunter who focuses on credit specific risk, and he respects the fact that markets can punish you for ignoring obvious danger. That’s the market memory that stands out to me, learning that risk isn’t just about returns, it’s about not sailing into harm when the rocks are visible.

IMPORTANT DISCLOSURE

This marketing communication is provided for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein, reflect the subjective judgments and assumptions of the authors only, and do not necessarily reflect the views of Loomis, Sayles & Company, L.P. Investment recommendations may be inconsistent with these opinions. There is no assurance that developments will transpire, as forecasted and actual results will be different. Information, including that obtained from outside sources, is believed to be correct, but we cannot guarantee its accuracy. This information is subject to change at any time without notice.

Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision.

Commodity, interest and derivative trading involves substantial risk of loss.

Diversification does not ensure a profit or guarantee against a loss.

Market conditions are extremely fluid and change frequently.

Any investment that has the possibility for profits also has the possibility of losses, including loss of principal.

There is no guarantee that any investment objective will be realized, or that the strategy will be able to generate positive or excess return.

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