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DoubleLine's Gundlach Outperforms Loomis' Fuss And Janus' Gross In Recent Market Rout
Not sure what the 'apples to donuts' mean comment means?
Gundlach, Gross, & Fuss all manage debt portfolios. Its true that Fuss and Gross' main vehicles provide them a wider field to deploy capital than does Gundlach's mortgage fund (i.e. DBLTX, DLTNX) -- presumably a wider latitude of investments should provide an opportunity for those managers to persistently outperform. --- Has it? All 3 decide on what degrees of credit- and interest-rate risk they wish to be exposed to, every single day. No one held a gun to Gross’ head and forced him to engage in (apparent-) naked put-writing. No one forced Mr. Fuss to hold non-USD obligations. They placed their bets, Gundlach placed his. The results speak for themselves.
If it is 'apples vs donuts', Gundlach would seem to be the (healthy) apple, with the others (presently) representing the deep-fried donuts...
Fwiw, and not that it should or that I really expected it to, but DSENX's recent dive and hopefully notch showed that it offers no extra downside protection; it behaved quite like everything else if not a little worse. Gundlach's contribution to the sauce notwithstanding.
@davidrmoran, in severe drawdown period in 2008, few asset classes escape except cash and some bond sectors. I have been intrigued with DSENX's since inception, but chose Vanguard Global Min Volatility, VMVFX, in the end for all its simplicity and low ER (0.30% vs 0.87%). David S. wrote a nice piece describing the merits of VMVFX (thank you David). This fund held up very well comparing its benchmark, Vanguard Total World Index.
@davidrmoran, I agree that value oriented funds tend to do better in drawdown period. In 2008, that view changed. Dodge & Cox stock fund suffered worst than the large cap value index. Few exception such as Yacktman, Vang Div Growth, and Franklin Mututal series have smaller loss while having shorter recovery time. The strategy DSENX is using sounded interesting but in the end it not convincing enough to commit real $ to it. Same reasoning applies other other alternate strategies including AQR Risk Parity fund.
Having said that the young Vanguard min volatility fund is still being tested before sizable allocation will be committed. There are unknowns in this quat-driven fund, but the low portfolio turnover rate is assuring (at least in my view). What I am seeking is the fund's sector allocation that lie on the opposite spectrum of my portfolio, and it may provide additional diversification. Only time will tell if this will work out. For now, the low ER and more straight forward investment approach are my reasoning.
Otherwise, moderate allocation funds are the other option, and that is being discussed in another thread.
Comments
Gundlach, Gross, & Fuss all manage debt portfolios. Its true that Fuss and Gross' main vehicles provide them a wider field to deploy capital than does Gundlach's mortgage fund (i.e. DBLTX, DLTNX) -- presumably a wider latitude of investments should provide an opportunity for those managers to persistently outperform. --- Has it? All 3 decide on what degrees of credit- and interest-rate risk they wish to be exposed to, every single day. No one held a gun to Gross’ head and forced him to engage in (apparent-) naked put-writing. No one forced Mr. Fuss to hold non-USD obligations. They placed their bets, Gundlach placed his. The results speak for themselves.
If it is 'apples vs donuts', Gundlach would seem to be the (healthy) apple, with the others (presently) representing the deep-fried donuts...
True, but some did rather better than others (PRBLX, Yackts, e.g.).
I was sort of thinking a value-oriented algorithmic vehicle w/ special bond twist might show its chops comparably. I assume its snapback will be good.
Have been in and departed min vol and low vol, rightly or wrongly.
Having said that the young Vanguard min volatility fund is still being tested before sizable allocation will be committed. There are unknowns in this quat-driven fund, but the low portfolio turnover rate is assuring (at least in my view). What I am seeking is the fund's sector allocation that lie on the opposite spectrum of my portfolio, and it may provide additional diversification. Only time will tell if this will work out. For now, the low ER and more straight forward investment approach are my reasoning.
Otherwise, moderate allocation funds are the other option, and that is being discussed in another thread.
Can you elaborate?