Our firm offers core-plus bond strategies, too ("Outing alpha," page 1, April 17).
We take our core portfolios and add 10,000 shares of Apple Computer. Done!
But seriously, while we do not have the data to do so, an interesting line of analysis would be the following:
Correlate the total returns of core and core-plus portfolios with the stock market. Then correlate just the "plus" of the core-plus (core-plus minus core) with the stock market. Would the correlation flip from negative to positive? If so, the plus might be an inefficient way of incorporating equity flavors (do you want your bond manager picking stocks?), and investors might be better off raising equity ratios and staying with core-type bond portfolios.
Lee W. Minton III
Minton Investment Management