Jeffrey Gundlach’s DoubleLine Total Return Bond Fund, which has beaten 95 percent of rivals over the past three years, had withdrawals of $811 million in November as investors continued to pull money from fixed-income funds.
A shift by household investors from bonds into equities that Bank of America Corp. dubbed the great rotation is being muted as pension funds and insurers boost fixed-income assets to match future obligations.
It’s mid-October, and Jeffrey Gundlach is giving a stump speech to a luncheon crowd of about 200 financial advisers and investors at Los Angeles’s City Club. The renowned money manager’s theme: the financial catastrophe on the horizon.
Jeffrey Gundlach, explaining why he named his firm DoubleLine Capital LP, compared running a fund to driving on a winding mountain road where a motorist mustn’t cross “the double line into the oncoming lane of risk.”
Jeffrey Gundlach, manager of the top-performing DoubleLine Total Return Bond Fund, said the U.S. Federal Reserve won’t reduce its monthly asset purchases, known as quantitative easing, until a new chairman takes over at the central bank at the end of January.
Jeffrey Gundlach’s DoubleLine Total Return Bond Fund, which has beaten 97 percent of rivals over the past three years, had its biggest net withdrawals as investors continued to flee bonds for the fourth straight month.
BlackRock Inc. Chief Executive Officer Laurence D. Fink said the U.S. Federal Reserve may not reduce its unprecedented assets purchases until as late as June following the political stalemate on the debt ceiling.
DoubleLine Capital LP’s Jeffrey Gundlach said the psychology in bond markets may have changed after the U.S. Federal Reserve unexpectedly maintained the pace of monthly bond purchases, sending yields lower.