Atteberry doesn't like Treasuries. "These are unsustainable [low] interest levels, with rates manipulated by the Fed's buying 30-year" debt, he says, referring to the Fed's plan to buy long-term Treasuries. Right now, outstanding Treasury bonds equal 60% of U.S. gross domestic product. By the end of 2010, they'll be 100%. That's about equal to the debt levels in such shaky economies as Italy, Greece and Sri Lanka. The fund, which can't have more than 25% of its assets rated below double-A, does come with a couple of caveats. Although it has a low expense ratio of 0.61%, FPA has a front load of 3.50%. And Rodriquez, who's never had an annual loss since taking over the fund in 1984, will take a one-year sabbatical next January. However, Atteberry, who's been with FPA since 1997, is a bond veteran who's expected to keep to the same strategy. The two shared Morningstar's fixed-income manager-of-the-year award for 2008.

How Not to Lose Money in a Recession
Thomas Atteberry, portfolio manager of the FPA New Income Fund, says there's nothing wrong with holding cash until a better idea comes along.

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