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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?