{"id":48384,"date":"2015-05-21T08:20:05","date_gmt":"2015-05-21T12:20:05","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=48384"},"modified":"2015-05-21T08:19:02","modified_gmt":"2015-05-21T12:19:02","slug":"doubleline-capitals-gundlach-warns-investors","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2015\/doubleline-capitals-gundlach-warns-investors.html","title":{"rendered":"DoubleLine Capital\u2019s Gundlach Warns Investors"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2015\/04\/esto-va-series-parte-v-L-HjDdjg3.jpg\"><br \/>\n<\/a><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2015\/05\/13.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"  wp-image-48385 alignright\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2015\/05\/13.jpg\" alt=\"1\" width=\"234\" height=\"156\" \/><\/a>New York (HedgeCoVest) &#8211; Jeffrey Gundlach, founder of DoubleLine Capital, issued a warning to bond fund investors on Tuesday, stating that they may not get what they were expecting. In particular Mr. Gundlach called out the unconstrained funds which are developed specifically for a period of rising interest rates.<\/p>\n<p>In an interview with <em>InvestmentNews, <\/em>Gundlach stated, \u201cWhat&#8217;s going to happen is that unconstrained investors are going to find themselves disappointed. I think they will be surprised that they are actually doing worse in many of these funds \u2014 in 2015, as interest rates are rising \u2014 they&#8217;re doing worse than they would in an index fund.\u201d<\/p>\n<p>Mr. Gundlach is also concerned about the amount of risk being taken on by these funds as one popular trade is to short treasuries and selling anything short comes with risk and interest on the short sell takes away from the investors returns. Many times the short-treasury trade is accompanied by a bullish trade on high-yield or junk bonds. He described the trade as an \u201cunacceptably high commitment to credit risk\u201d that&#8217;s \u201clong credit risk and short safety.\u201d<\/p>\n<p>Rick Pendergraft<br \/>\nResearch Analyst<br \/>\nHedgeCoVest<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCoVest) &#8211; Jeffrey Gundlach, founder of DoubleLine Capital, issued a warning to bond fund investors on Tuesday, stating that they may not get what they were expecting. In particular Mr. Gundlach called out the unconstrained funds which are [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[16133,16064,16135,16134,86],"class_list":["post-48384","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news","tag-doubleline","tag-funds","tag-investment-news","tag-jeffrey-gundlach","tag-risk"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=48384"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48384\/revisions"}],"predecessor-version":[{"id":48386,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/48384\/revisions\/48386"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=48384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=48384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=48384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}