Investors Withdrew Billions From Jeff Gundlach's Bond Fund Because Of The Taper Threat

Clients
pulled $US2.1 billionfrom Jeff Gundlach’s $US35.1 fund in September, Bloomberg’s
Alexis Leondis reports.
It’s not really the bond oracle’s fault. His DoubleLine Total Return Bond fund has bested 97% of rivals over the past three years.

But investors have yanked a total of $US118 billion from bonds from May 31 through September 18 largely due to fears that the Federal Reserve would begin tapering its bond purchases, according to Bloomberg.

“DoubleLine is sharing in the outflows we’re seeing throughout the fixed-income world,” DoubleLine analyst Loren Fleckenstein told Bloomberg. “With the investment mood becoming more cautious with regard to fixed income, seeing DoubleLine go from a high-growth phase to a period of consolidation was to be expected.”

Gundlach’s fund has returned 0.3% year to date, beating out 92% of similar funds, according to Bloomberg.

Read the full report at Bloomberg >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.