And investors who heeded his advice on Bank of America profited handsomely, as he was the lone dissenter when everyone else was bullish on the stock.
Therefore, this is a voice investors may want to listen to as we begin 2012.
Gundlach is the CEO and CIO of the fixed-income investment management firm DoubleLine Capital, which manages $22 billion in mutual funds, hedge funds and institutional accounts.
Gundlach’s five key factors that investors should consider in the New Year:
- Stay at your maximum financial asset allocation to US dollar based investments.
- Focus on ridding your portfolio of counterparty risk.
- Suspend purchases of Mortgage REITs (Real Estate Investment Trust), for the time being.
- Expect the nearly universal underperformance by active bond managers in 2011 to prompt a widespread move toward indexation in 2012.
- Keep your eye on the Shanghai Composite Index because it’s persistently weak.
The Doubleline Core Fixed Income Fund, and , was named the top bond mutual bond fund for 2011 by Fortune magazine and The Financial Times.
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