Gundlach's DoubleLine Capital posts 24th straight month of inflows

By Jennifer Ablan

NEW YORK (Reuters) - DoubleLine Capital, overseen by widely followed investor Jeffrey Gundlach, said on Wednesday it posted a net inflow of $1.95 billion in January, marking the firm's 24th consecutive month of inflows.

The DoubleLine Total Return Bond Fund, the firm's largest fund by total assets, had a net inflow of $1.67 billion in January. The fund, which invests primarily in mortgage-backed securities, has $54 billion in assets.

The DoubleLine Core Fixed Income Fund, which invests in different sectors of the fixed income universe, including corporate securities, bank debt, collateralized loan obligations, emerging markets debt, municipal bonds and Treasuries as well as MBS, had a net inflow of $221.23 million in January.

"DoubleLine Total Return and DoubleLine Core Fixed income continued their strong relative performance in January, after outperforming peers in 2015," said Todd Rosenbluth, head of exchange-traded fund and mutual fund research at S&P Capital IQ. "The funds have performed well with less volatility, which is particularly appealing to investors in an uncertain bond market and with a flight to quality."

DoubleLine's largest equities open-end mutual fund, the DoubleLine Shiller Enhanced CAPE fund, had a net inflow of $81.99 million in January, its largest monthly net inflow since the fund launched on Oct. 31, 2013.

"DoubleLine Shiller Enhanced CAPE similarly outperformed in 2015 in choppy equity markets and while it lost money in January, it lost less than the S&P 500 index," Rosenbluth said.

The fund, which is in Morningstar's large-capitalization value fund category, has $700 million in assets and is run by Gundlach and Jeffrey Sherman.

The Shiller Enhanced CAPE fund, which actively invests in a diversified portfolio of bonds and floating rate loans, has two sources of return: an actively managed fixed income portfolio and a smart beta approach to the U.S. stock market.

The Shiller Enhanged CAPE fund outperformed 99 percent of its peer group in 2014 and 2015 with returns of 17.86 percent and 4.65 percent, respectively, according to Morningstar data. So far this year, the fund is down 4.16 percent, surpassing 73 percent of its peer group, Morningstar said.

Los Angeles-based DoubleLine oversees $85 billion in assets under management.

(Reporting By Jennifer Ablan; Editing by Meredith Mazzilli and Chizu Nomiyama)

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