Gundlach’s DoubleLine sees worst outflows since 2014 ‘taper tantrum’

DoubleLine Capital on Friday said its funds had collectively posted a net outflow of $990.5 million in November, the first month that share redemptions exceeded subscriptions since January 2014, during the Federal Reserve’s so-called “taper tantrum.” Tracking the trend of the overall market, the fund’s bond portfolios saw particular outflows, with the DoubleLine Total Return Bond Fund – the firm’s largest fund by assets, with $59.2 billion – seeing $1.4 billion in outflows over the month, the third largest monthly outflows in the fund’s history. Bonds saw heavy selling in November, especially after the election of Donald Trump, with investors expecting the President-elect’s proposals to lead to higher interest rates and inflation. November was the worst month for Treasurys since December 2009, with yields on the 10-year rising more than 50 basis points in the month. The $1.7 billion DoubleLine Shiller Enhanced CAPE fund, DoubleLine’s biggest equities fund, saw $171.7 million in inflows over November. Stocks rallied following the election, with investors betting that Trump’s policies would lead to accelerated levels of growth. The Dow Jones Industrial Average is up 4.5% since the election while the S&P 500 is up 2.4%.