Gundlach considers stock funds to expand DoubleLine's offerings
By Bloomberg | September 12, 2012 12:07 pm
Jeffrey Gundlach, who built DoubleLine Capital into a $40 billion fixed-income shop since he co-founded the firm less than three years ago, said he might add stock funds to the lineup.
“I like the way equities are out of favor, and I like doing things when they're unpopular,” Mr. Gundlach said Tuesday in a telephone interview. “Equities are a superior investment to bonds for an inflation hedge, and I like the ability to diversify and broaden the firm.”
Mr. Gundlach said DoubleLine may bring in teams within a few months that could manage a mutual fund that invests in U.S. stocks and a long/short equity hedge fund.
Pacific Investment Management Co., which runs the world's largest bond fund, started branching into equities almost three years ago and now offers four main stock strategies: deep value, emerging markets, dividends and long/short. Bill Gross, PIMCO's founder and co-chief investment officer, said in his September investment outlook that returns from both stocks and fixed income will be stunted.