DoubleLine's Gundlach Calls Unconstrained Bond Funds A 'Gimmick' And Constrained

Ted

FYI: Jeffrey Gundlach doesn't see a bright future for unconstrained bond funds, with the notable exception of his own DoubleLine Flexible Income Fund (DFLEX), which he doesn't really identify as unconstrained.

“The category is something of a gimmick, because the strategy sounds nimble, but the allure is really the hope that they will be able to avoid interest-rate risk,” the founder of DoubleLine Capital told InvestmentNews in a phone interview
Regards,
Ted
http://www.investmentnews.com/article/20160106/BLOG12/160109970?template=printart

rjb112

Interesting article Ted.
Thanks

BobC

Strange, since his Flexible Income fund is, essentially, an unconstrained fund. Prospectus says "Adviser has broad flexibility to use various investment strategies and to invest in a wide variety of instruments that the Adviser believes offer the potential for current income, capital appreciation, or both. The fund is not constrained by management." If it walks like a duck and quacks like a duck...

heezsafe

Commentary on Gundlach interview:
http://awealthofcommonsense.com/when-investors-call-the-shots-for-portfolio-managers/