The closed-end piece has been the exciting part lately. "As the debt-ceiling fears unfolded in recent weeks, discounts in the closed-end space kicked out," says RiverNorth's Galley, who runs the closed-end portfolio and oversees the combined fund. The discounts grew even bigger after Aug. 8, when markets cracked, and the Fed pledged to keep interest rates at rock-bottom levels for at least two years. Some closed-ends were trading more than 10% below their net asset values. Immediately, Galley started shifting some money from the Gundlach funds to soak up the deep discounts in closed-ends. His closed-end holdings went from 18% of the $300 million fund to 27%.
The no-load RiverNorth DoubleLine fund, launched earlier this year, has notched annualized returns of 9% and looks poised to keep thriving in the market upheaval. The fund caps its fees at a reasonable 1.2%.
http://online.barrons.com/article/SB50001424052702303822904576516293049010796.htmlShareholder since April fool's day.
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http://www.bloomberg.com/news/2011-08-26/gundlach-s-doubleline-waits-to-buy-until-everyone-in-fear-adds-to-cash.html
Gundlach's DoubleLine Will Hold Cash Until Everyone in ‘Fear'
Bloomberg, Aug 26 2011
Jeffrey Gundlach’s DoubleLine Capital LP is favoring cash over almost all investments including corporate bonds, wagering that relative yields will widen even after expanding to the most since October 2009.
“I want fear,” Gundlach, the founder and head of Los Angeles-based DoubleLine, said in an Aug. 24 telephone interview. “I want to buy things when people are afraid of it, not when they think that it’s a gift being handed to them,” he said of speculative-grade bonds.
Some of DoubleLine’s funds, which usually don’t hold any cash, currently are allocating 15 percent, said Gundlach, who managed the top-rated intermediate-term U.S. bond mutual fund for 15 years.