Jeffrey Gundlach is the DoubleLine Fund manager. On a Moneytalk radio program, Bob Brinker once commented that in his opinion, Gundlach is the best bond manager in the world.
Now a year later, let's do a comparison.
DoubleLine pays a higher dividend than Vanguard Ginnie Mae Fund, and its year-to-date return is better. However, it is a much riskier with 25% "below B" bond holdings and a duration of 2.65%. Plus, DoubleLine is only 2 years old and Ginnie Mae is 32 years old. .
I advise due diligence if you are considering investing in DoubleLine. Note the sub-prime holdings in their mortgage backed securities at their website. (LINK)
2 comments:
Even though your post doesn't really compare the GNMA fund to the Total Return fund why should it?
They are two completely different types of funds and any comparison of the two is meaningless.
And btw, since you didn't even provide comparable numbers for the GNMA fund a reader couldn't compare them if if she wanted to.
I guess the question is, are you trying to say that Brinker should not have sold the GNMA fund?
Amby
Hi Amby,
I guess I failed to make the point of my article clear.
I am not trying to make a comparison between the GNMA Fund and the DoubleLine Fund except to show how DIFFERENT they are in light of the fact that Bob Brinker replaced one with the other.
Perhaps you missed the part where I said that Bob Brinker had sold GNMAs to buy DoubleLine which is QUITE a different animal.
My question is, was it worth the extra risk? Please tell me what you think.
Based on this past year, it's looking like Bob Brinker added a lot of risk to his income portfolio with no ensuing benefit.
Of course, added risk in that portfolio doesn't matter one whit to Bob Brinker since it is off his official books and not counted his Hulbert Financial Digest performance record.
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