DoubleLine Capital intends to launch a new leveraged multi-asset fund that seeks returns similar to those of the BNP Paribas Multi-Asset Trend Index.
The DoubleLine Multi-Asset Trend Fund will invest in stocks, bonds, currencies, credit default swaps and commodities and will be managed by CEO Jeffrey Gundlach and Deputy Chief Investment Officer Jeffrey Sherman, according to a filing Friday with the Securities and Exchange commission.
The fund will use investment leverage through derivatives such as interest rate swaps and possibly futures contracts; along with investments in a portfolio of debt securities, these holdings will typically equal roughly 200% of the fund’s net asset value, the SEC filing states.
The portfolio of debt instruments will target an effective duration one to three years and may include a variety of securities, including government agency debt to corporate bonds, mortgage-backed securities, bank loans and municipal debt.
As of Sept. 30, DoubleLine had $141 billion in assets under management, with multi-asset strategies totaling $138 million.
Investor shares of the DoubleLine Multi-Asset Growth Fund (DMLIX) posted a return of 5.08% in November and 3.10% for the past three months; it hedged blended benchmark had a gain of 7.62% and 4.16% for the same periods.
In a recent webcast Gundlach said he expects 10-year U.S. Treasury yields to head higher, the U.S. dollar lower and small-cap stocks to rebound.