Jeff Gundlach dumped his entire stake in European stocks right before the Brexit pandemonium

Photo: David A. Grogan/CNBC/NBCU Photo Bank via Getty Images.

Jeff Gundlach sold right before the Brexit chaos.

The DoubleLine Capital CEO said Friday that his firm sold all of its European equities position before the market closed Thursday and Britain voted to leave the European Union.

Equities rallied Thursday, while Friday turned out to be the worst session for European stocks since 2008.

But this doesn’t mean Gundlach was totally ready for a Brexit, just like many others on Wall Street.

“Yes, I am surprised,” he said about the referendum result. “It suggests the public mood for change is even greater than I thought.”

In a statement Friday, DoubleLine Capital said it was in a capital preservation posture — a strategy with the primary goal of minimising losses, typically by investing in the safest assets.

DoubleLine added:

“While the referendum result triggered selling in U.S. stocks and widening in credit spreads, and much greater repricings in risk assets on the Continent, we continue to emphasise capital protection while looking to take advantage of dislocations in select markets, including in the aftermath of the Brexit vote as Brussels and London implement Britain’s Independence Day.”

The DoubleLine Total Return fund has returned 2.53% year-to-date.

During a client presentation earlier in June, Gundlach warned that a Brexit would mark the beginning of the end of the eurozone.

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