WHO: ASHA JOSHI is a managing principal at Payden & Rygel, the $35b independent investment management firm at Los Angeles, CA. Joshi was previously a vice president of capital markets at Canadian Imperial Bank of Commerce, where she advised clients on managing interest-rate and currency risk. Joshi has an MBA from the University of California at Los Angeles, serves as chairman of the scholarship committee of the Los Angeles Society of Financial Analysts (LASFA) and is a member of the Association of Investment Management and Research (AIMR).

STRATEGY: “We have many clients in the Valley, whom we help increase their returns on operating cash,” says Joshi. “Our strong belief is that bonds should behave like bonds—many products are disguised as bonds and the returns have shown the volatility in the products.” Joshi says that the underlying philosophy is “no surprises to our clients.” P&R’s strength has been strong research and sell discipline. “Technicals do drive the market, but we always keep an eye on the fundamentals,” says Joshi. “There are no communication gaps between our equity and bond analysts.” While diversification has been a very strong player in P&R’s strategy, sell discipline has helped it from being buffeted by the “fallen” angels. “Our goal is not to play in the distress debt market. Our clients want bond returns and that is what we deliver.”

PORTFOLIO: Given with what has happened with equities, Joshi recommends trying something that gives a little bit more than cash, which seems to be the current trend. “One of the top performing sectors has been the emerging market bonds,” says Joshi. “Russia, Mexico, Philippines are interesting countries.” Healthcare and gaming technology ranks near the top in Joshi’s picks.

ADVICE: “Choose some cash plus “juice” products,” recommends Joshi. “Don’t make decisions looking in the rear view mirror. History doesn’t necessarily project the future.” Diversification is a key to a wise investment strategy, advises Joshi.