Treasuries are having their best start to a year since 2010 as investors from Jeffrey Gundlach to Goldman Sachs Group Inc. say the Federal Reserve will keep its benchmark interest rate at almost zero into 2016.
Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP, said comments by the Federal Reserve’s Janet Yellen and a lack of inflation indicate Fed tapering may be further away than investors expect.
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’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.
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.”
TCW Group Inc. decided to oust Jeffrey Gundlach despite being warned that firing the fund manager could trigger redemptions of as much as 70 percent, according to testimony during the six-week trial of the bond- fund manager and his former employer.
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.