FMD Capital Management

Posts Tagged: gundlach

Is A Dividend Cut On The Horizon For DBL?

Written by David Fabian, November 06th, 2017

One of the closed-end funds that seems to be a recurrent favorite on our watch list is the DoubleLine Opportunistic Credit Fund (DBL), run by Jeffrey Gundlach of DoubleLine Capital.  This unique actively managed portfolio was the first of its kind to debut from DoubleLine back in 2012 and has developed a cult following among CEF investors.

DBL primarily invests in a mixed basket of mortgage backed securities, collateralized loan obligations and other asset backed securities.  The fund has just over $325 million in total assets with a relatively tame 16% leverage ratio to boost its net exposure.  It currently yields over 8% annually and income is paid monthly to shareholders.  Read more

CEF 101: Don’t Buy Funds At Abnormal Premiums

Written by David Fabian, October 14th, 2016

Investors in closed-end funds have to contend with different risks and analysis criteria than ETF or open-ended mutual funds.  Those that have spent any length of time in this space have more than likely learned how important it is to look beyond distribution yield, recent price trend, or the touch of a star fund manager.  While these characteristics are important, they can easily be overridden by an exorbitant premium or fundamental catalyst that turns the corner. Read more

4 Funds To Buy If You Don’t Know Anything About Investing

Written by David Fabian, August 30th, 2016

There is a stigma associated with investing that it is complicated and fraught with risks.  Those who have never been taught how stocks and bonds work can be intimated by the process of putting their money in the market for fear of making a mistake.  For as well all know, a mistake in investing is measured in real dollars lost.     Read more

Mortgage REIT ETFs Explode To The Upside

Written by David Fabian, May 17th, 2016

The allure of high yields is something that income investors are always tempted to chase.  When you couple an outsized dividend payout with an explosion of momentum, the attraction can become even further exacerbated.  This is exactly what happened earlier this month when Jeffrey Gundlach offered a recommendation for investors to purchase the iShares Mortgage Real Estate Capped ETF (REM) and simultaneously short the Utility Select Sector SPDR (XLU).

Since that call, REM has only experienced a single minimal down day among nine trading sessions and daily volume has exploded in kind.  The chart below shows how much Gundlach’s recommendations carry weight throughout the income-focused investment community.

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Digging Into 2 New DoubleLine ETFs

Written by David Fabian, May 04th, 2016

It’s difficult to dispute the success of the first ETF offering from DoubleLine, which has managed to acquire more than $2.3 billion in assets during its short 14-month tenure.  The SPDR DoubleLine Total Return Tactical ETF (TOTL) is a hybrid strategy that is sourced from two prominent fixed-income mutual funds that are run by Jeffrey Gundlach. Read more