President & Chief Investment Officer, Karpus Investment Management
Years in current role: 2 as President, 20 with Karpus
What has been your organization’s biggest success over the past year?
I think that our biggest success is rooted in the implementation of our core strategy, which is to identify what we believe are inefficiently priced securities with attractive risk/return propositions. Adhering to this has helped us minimize key risks that we see in today’s bear market.
What are your expectations for the next 6-12 months?
We are in a completely different environment than anything we have seen in the last 15 years. The Federal Reserve (Fed) has increased the Fed Funds rate above 3% and the market currently expects it to hike to 4.5% by early 2023. Additionally, the Fed is reducing its balance sheet by $95 billion per month ($1.14 trillion/year), which reduces liquidity. I expect returns to be muted and volatility to be high until the Fed finishes this tightening cycle. Over a longer-time horizon, higher interest rates in the bond market coupled with lower valuations on stocks point to better go-forward returns in both asset classes.
What advice would you give somebody just starting out in your industry?
I would tell them to look beyond their current job description for ways to add value to their clients and organization. This will make them indispensable to their manager and the company as a whole.
What is one personal goal you have for the next year?
My goal, year in and year out, is to deliver our clients returns in excess of their benchmark while managing risk to the best of my abilities.
What are your favorite things about Rochester?
Rochester is a golfer’s paradise. We are fortunate to have so many historic and challenging courses in the area. I am looking forward to the PGA Championship at Oak Hill Country Club in May 2023.