Gundlach’s flagship bond fund faces first outflow since 2014
Could the first tiny trickle out of Jeffrey Gundlach’s $61.6bn DoubleLine Total Return Bond fund be a sign of things to come?
Last month the outspoken West Coast bond investor’s flagship fund saw its first, albeit tiny, outflow since January 2014. A net $33.2m leaving the fund in October, representing a miniscule proportion of its overall assets, writes Miles Johnson in New York.
Even so flows into the mutual fund are closely watched as a barometer of retail investor sentiment. A recent rise in bond yields across the world has prompted renewed debate over whether a multi-decade bull market for bonds – which helped propel investors such as Mr Gundlach to celebrity status – may finally be coming to a close.
The last outflow from the Total Return Bond fund of $251m back in early 2014 came in the wake the so-called Taper Tantrum of late 2013 when investors started to get jittery that rising US interest rates would hit bonds.