"Bond King" Jeff Gundlach's Doubleline Capital Has Terrible Returns

Similar to the previous "bond king" Bill Gross, the performance of the media's new "bond king" Jeff Gundlach is not what you've been led to believe by the financial media. 

However, Gundlach's performance is much worse than that of Bill Gross. 

Incidentally, if you're thinking Bill Gross had "amazing" performance as the media claims, that implies two things. 

First, you trust the media (a poor decision).

Second, you haven't examined the details for yourself (another poor decision). 

Bill Gross' performance is a topic I may go into another time.

Always remember this.

Never trust the financial media or anyone associated with it or promoted by it. The media lies on a daily basis in order to achieve its dishonest objectives. 

In addition to having been overhyped, another thing Gross and Gundlach have in common is that they're both Jewish.    

What a shocker! 

Why else do you think they have been overhyped by the media? 

Let's see...media is controlled by Jews.

And nearly all of the media's "experts" are Jews.

What a coincidence! 

Considering the fact that less than 2 percent of the US population is Jewish, it seems more than strange that nearly all of the "experts" on everything seem to be Jewish. 

Are you starting to see a pattern here? 

I've discussed this issue in the past.

Quite simply, the longstanding behavior of pathological Jewish tribalism results in mass discrimination against Gentiles in all fields which Jews have seized control over.

And it results in what I have previously referred to as "Jewish privilege." Today, I'm going to use another term that explains this phenomenon. I call it "tribal nepotism."

It's important to keep in mind that the media is promoting Gundlach as the new "bond king" without ever discussing the performance of his funds, not to mention his broken clock, fear-mongering predictions, which never materialize.

But even a broken clock is right twice a day.

Gundlach hasn't been right in a long time.  

This is the typical media scam.

It's complete fraud. 

At least Gross delivered decent returns even after deducting the ridiculously high fees charged by his PIMCO Total Return Fund.

The high fees was the problem I had with Gross, not his performance. But once you deduct all fees from gross returns, the performance wasn't so good. 

Incidentally, the fund has since lowered its fees significantly compared to the period when Gross was managing the fund. 

The bottom line is Gundlach's performance is pretty terrible.

Even if he didn't charge any fees, his performance would still be terrible. 

You can examine the performance of his funds for yourself.

Many of his bond funds have produced catastrophic losses, so it's disgusting that no one in the media has ever mentioned it. Meanwhile, the media promotes him as if he's some kind of investment superman.

I consider as typical media fraud. 

By early 2022, it was common knowledge that the Fed was going to raise short-term interest rates considerably over the course of the year. 

Given that Gundlach is the "bond king," he should have known this was coming in advance. Moreover, he should have expected rates to be raised more than the Fed first estimated because the Fed's initial estimates were quite low (around 2.5%). 

Moreover, by early 2021 experienced investors knew the Fed would be starting quantatitive tightening (QT) sometime within the next several months. 

QT was certain to cause agency-MBS to collapse in price. 

And that's precisely what's happened since 2022. 

I actually warned research subscribers of Dividend Gems of this very issue in 2021 and repeated these warnings throughout 2022 and 2023. 

What was Gundlach doing throughout this period? 

He was making the rounds in the media, pretending to be some kind of investment genius. 

As far as I have been able to determine, not once did Gundlach warn investors that quantatative tightening and higher interest rates was going to decimate bonds, and especially agency-MBS, for which many of his funds had invested. 

Meanwhile, the media continued to promote Gundlach as the "bond king." 

As you can imagine, many investors were lured to invest in Gundlach's bond funds thinking it would be a safe place to be. 

But as the stock market collapsed in 2022, so did bonds. 

What about Gundlach's role in all of this?

Although I do not know if Gundlach has done anything that's illegal, as far as I have seen he failed to warn investors that bonds would get clobbered as rates went up. And agency-MBS would get especially whacked due to QT.

So from this alone, it's easy to see that he's not someone to be trusted for anything related to the capital markets because his sole agenda is to sell his bond funds.

Furthermore, I consider Gundlach to be a con artist because he continuously uses his media exposure to promote all sorts of doom scenarios, while making fear-mongering predictions which never materialize.

And he pulls this routine in order to scare investors into his bond funds, for which he charges hefty fees. 

It's the same song and dance used by many of the other "experts" from the media, notably Peter Schiff.  

If the media is going to air any fund manager, it needs to show their full track record. 

But of course if this happened, no one would pay attention to the clowns the media promotes as "experts" because their track records suck.

This is a fact we have been confirming for nearly two decades.   

Now, as bad as Gundlach's performance has been, things get much worse if you happen to be an investor in his funds.

Quite simply, your investment returns are going to be significantly worse than the fund performance data published in Doubleline's marketing materials.  

How can this be?

Because the performance data has been manipulated. 

The scary thing is that this manipulation is not illegal and is actually common practice in the fund management industry.

This gives you an idea how corrupt the SEC is.

The SEC has done nothing to end this practice of allowing fund companies to publish manipulated and hence unrealistic fund performance data. 

Even after decades of fraud and deceitful marketing tactics, the fund industry is still not truly regulated.  

Take a look at the performance data from one of Gundlach's funds (below).  

If you think this fund has delivered bad performance (and you'd be right) consider that the performance assumes all dividends were reinvested, but does not include any expenses for taxes.

Moreover, no other fees or expenses were deducted from this performance data. 

What this means is that the performance data has been manipulated.

Specifically, the performance data has been artificially inflated by fees, expenses and taxes that should have been subtracted.  

Keep in mind that the deduction of fees and other expenses must be compounded to determine the full impact on the inflation of performance data.

Notice how the above "disclaimer" uses the smallest font, is lightly colored and is far away from the data table, which as you can see has been printed using a much larger font.

This is no coincidence.

Use of these tactics increase the chance investors will not read the "disclaimer."

In addition, most investors will not truly understand the impact of the disclaimer.

This is the kind of misleading garbage the fund industry is permitted to carry out because the industry is NOT TRULY REGULATED.

Once again, the SEC has failed investors and continues to allow funds to mislead them. Therefore, you should realize who the SEC really serves. 

How is performance data credible if reasonable fees and expenses haven't been deducted?  

And by the way, what reasonable investor reinvests dividends from a fixed income fund?

That makes absolutely no sense if you have a basic understanding of investments. 

If you're reinvesting dividends from fixed income investments, you're lost in the woods and you really need some assistance. 

If that describes you, consider enrolling in our Investment Boot Camp Series, which covers this topic, along with hundreds of other topics and even includes advanced material you won't find anywhere else in the world because this material was created by Mike Stathis, one of the world's leading investment analysts.