Jennifer's Feed
May 21, 2015

Twin bond, dollar selloffs hit Pimco Total Return Fund

NEW YORK (Reuters) – The Pimco Total Return Fund, which last month lost its crown as the world’s biggest bond fund, is now losing some momentum in performance.

So far in May, the flagship fund, which has $110.4 billion in assets, is posting a negative return of 2.22 percent, lagging its benchmark by 0.70 percentage points and peer fund category by 0.92 percentage points, according to Morningstar data on Wednesday.

May 15, 2015

Hedge fund activists buy McDonald’s, but are they lovin’ it?

By Jonathan Stempel and Jennifer Ablan

(Reuters) – Some of the top U.S. hedge fund investors and activists, including Jana Partners LLC took new positions or raised their equity stakes in fast food chain McDonald’s Corp (MCD.N: Quote, Profile, Research, Stock Buzz) during the first quarter, according to regulatory filings on Friday.

Jana, run by Barry Rosenstein and known as a practitioner of activist investing, took a new 125,000 share stake in McDonald’s after having sold a small position in the fourth quarter. Keith Meister’s Corvex Management LP also took a new position in the company, buying 205,000 shares. Meister was billionaire activist investor Carl Icahn’s right-hand man prior to founding Corvex.

May 14, 2015

Pimco equities chief Maisonneuve leaving firm; two strategies closing

By Jennifer Ablan and David Gaffen

(Reuters) – Pimco’s global equities Chief Investment Officer Virginie Maisonneuve is leaving the bond powerhouse, it said on Thursday, less than a year and a half after she was hired.

The firm said it would close two Pimco equity strategies – Pathfinder, which is managed by Anne Gudefin, and Emerging Markets Equity, which Maisonneuve oversaw.

May 13, 2015

DoubleLine’s first actively managed ETF hits $500 million

NEW YORK (Reuters) – DoubleLine Capital’s first actively managed exchange-traded fund, the SPDR DoubleLine Total Return Tactical ETF, surpassed $500 million in assets in less than three months, according to its administrator on Wednesday.

The SPDR DoubleLine Total Return Tactical ETF, co-managed by widely followed investor Jeffrey Gundlach, had $509.6 million in total assets as of the close on Tuesday, according to State Street Global Advisors, who partnered with DoubleLine to bring the product to market.

May 12, 2015

DoubleLine’s Gundlach: Puerto Rico munis not a ‘big bet’ for firm

NEW YORK (Reuters) – Jeffrey Gundlach, chief executive of investment firm DoubleLine Capital, said Puerto Rico municipal bonds represent about 1 percent of his DoubleLine closed-end fund.

In an investor call on Tuesday, Gundlach said Puerto Rico is not a “big bet” for the $2.2 billion DoubleLine Income Solutions Fund. Puerto Rico bonds, which carry triple-tax free status, have traded at distressed levels for more than a year amid speculation the commonwealth and its agencies will not be able to repay some $70 billion of debt.

May 11, 2015

Bill Gross’s fund draws small cash inflow, with returns lagging

NEW YORK (Reuters) – The Janus Global Unconstrained Bond Fund, overseen by widely followed investor Bill Gross, attracted just $58.6 million in net new cash in April and posted below-average returns, according to Morningstar data on Monday.

The fund, which had assets of $1.5 billion at the end of April, was down 0.39 percent year-to-date as of Friday, underperforming its peer category by 1.83 percentage points for that period, Morningstar said.

May 7, 2015

Pimco launches new capital securities and financials fund

NEW YORK, May 7 (Reuters) – Bond giant Pimco rolled out on
Thursday the Pimco Capital Securities and Financials Fund, which
will invest in capital securities, including subordinated bonds,
preferred shares and contingent capital instruments issued by
financial institutions globally.

Philippe Bodereau, managing director and portfolio manager
based in London, and Yuri Garbuzov, executive vice president and
portfolio manager based in Newport Beach, California, will
manage the fund.

May 6, 2015

DoubleLine’s Gundlach expects weak April U.S. payroll data

NEW YORK, May 6 (Reuters) – Jeffrey Gundlach, chief
executive of investment firm DoubleLine Capital, said Friday’s
report on U.S. nonfarm payrolls in April “feels to me that it’s
going to be weak.”

Gundlach was speaking at a private DoubleLine event in New
York on Wednesday, a day after predicting the Federal Reserve
would likely not raise interest rates this year.

May 5, 2015

DoubleLine’s Gundlach sees no Fed rate increase in 2015

NEW YORK (Reuters) – Jeffrey Gundlach, chief executive of investment firm DoubleLine Capital, said on Tuesday he believes the U.S. Federal Reserve will probably not raise interest rates this year, in part because of a lack of wage inflation.

Speaking at DoubleLine’s annual investor event at the New York Yacht Club, the influential bond investor also cautioned investors to steer clear of high-yield, or junk, bonds when rates begin to rise.

May 4, 2015

Pimco Total Return Fund loses world’s biggest bond fund title

By Jennifer Ablan

(Reuters) – The Pimco Total Return Fund, launched by Bill Gross, has lost its title as the world’s biggest bond mutual fund, following two years of withdrawals.

On Monday, Pimco said investors yanked another $5.6 billion from the Pimco Total Return Fund last month, bringing its assets to $110.4 billion at end of April.