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Van Kampen's Gilligan Tops Peers For 12th Year.(A)

Investor's Business Daily

| January 03, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DAN MOREAU

James Gilligan broke a record in 2002. He beat his U.S. hybrid-fund peers for the 12th year in a row.

Gilligan did it at the helm of $5.75 billion Van Kampen Equity and Income Fund. The fund is a blend of stocks and fixed-income securities. That was down 8.32% for the year through Dec. 30, but ahead of its category by 1.6 percentage points.

Over the last 10 years it has averaged an 11.6% annualized return. That's 2.28 percentage points ahead of the S&P 500 index.

Gilligan, 44, has managed the fund since 1990. Growth-oriented stocks are one mainstay of his strategy. On the fixed-income side, he'll trim Treasurys for corporate bonds when he seeks better performance without too much added risk.

Gilligan spoke with IBD from his office in Houston.

IBD: You avoided calamities like Tyco and Enron, and you've derided these conglomerates as "roll-ups," bunches of smaller similar businesses. What was your beef with them?

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