Jeffrey Gundlach knows bonds. But he's mulling an expansion of his hedge fund into stocks, which could include a long/short equity vehicle.
The DoubleLine Capital founder told a Webinar yesterday that the Los Angeles-based firm he co-founded with Philip Barach and which boasts $40 billion in assets despite getting its start just three years ago, may add "a couple" of stock-trading teams over the next few months. Those additions would then be charged with running a long/short hedge fund and a U.S. equity mutual fund.
"I like the way equities are out of favor and I like doing things when they're unpopular," Gundlach told Bloomberg News. "Equities are a superior investment to bonds for an inflation hedge and I like the ability to diversify and broaden the firm."