Head of Active Fixed Income, Earl Davis steering towards success with active portfolio management team
Earl Davis, Head of Active Fixed Income & Money Markets was drawn to BMO Global Asset Management (GAM) by its commitment to cultivating a winning culture, a principle that has guided his career, including his previous role at the Ontario Teachers’ Pension Plan. Under his leadership, the fixed income team has doubled in size and strategically enhanced its capabilities through diverse, innovative hires.
BMO GAM prides itself on customizing solutions for clients, a hallmark of Davis's approach to active fixed income management. Davis forecasts a period of heightened inflation and market volatility, with expectations of lower interest rates by the end of 2024 due to the business cycle's maturation. His investment strategy focuses on generating returns through bond yields and selective corporate investments, emphasizing active management to navigate market fluctuations.
The team's investment strategy is cautious yet opportunistic, with a focus on sectors like financials and telecoms, where they see potential for strong yields and business models that can weather inflation. Davis highlights the importance of robust team discussions to avoid oversight and is optimistic about companies like Rogers Communications and the banking sector, despite challenges like geopolitical risks and wage inflation.
Technology plays a critical role in enhancing the team's capabilities, with a transition from Excel-based analysis to sophisticated Python-powered analytics, facilitating a blend of quantitative and qualitative decision-making.
Davis highlights, “The feedback we consistently receive is a testament to the trust and confidence placed in us. It’s a reflection of our collective strength as a team and the effectiveness of our process, all of which are integral to the winning culture that drew me to BMO GAM.”
