DoubleLine Capital on Friday said its funds had collectively posted net outflows in November, with monthly share redemptions exceeding subscriptions for the first time since January 2014, which was during the tail end of the Federal Reserve’s so-called “taper tantrum.”
Net outflows totaled $ 990.5 million in the month, with bond funds seeing particular outflows, a trend that matched the broader market. While DoubleLine, which is run by Chief Executive Officer Jeffrey Gundlach, saw positive flows for its equity funds in the month, this was overshadowed by the retreat in fixed income.
The DoubleLine Total Return Bond Fund—the firm’s largest fund by assets, with $ 59.2 billion—saw $ 1.4 billion in outflows over the month, the third largest monthly outflows in the fund’s history. The two largest months of outflows occurred in December and September of 2013, during the tapering of the Fed’s monthly bond purchases.
For the year, however, flows into the Total Return fund remain positive, with $ 6.9 billion in inflows.
Bonds in general saw heavy selling in November, especially after the surprise election of Donald Trump, with investors expecting the president-elect’s proposals to lead to higher interest rates and inflation. November was the worst month for Treasurys since December 2009, with yields on the 10-year Treasury note TMUBMUSD10Y, -2.13% rising more than 50 basis points in the month. It is currently yielding 2.40%, up from an all-time low below 1.4% in July.
On the equity side, the $ 1.7 billion DoubleLine Shiller Enhanced CAPE fund, DoubleLine’s biggest equities fund, saw $ 171.7 million in inflows over November. Stocks rallied following the election, with investors betting that Trump’s policies would lead to accelerated levels of growth. The Dow Jones Industrial Average DJIA, -0.11% is up 4.5% since the election while the S&P 500 SPX, +0.04% is up 2.4%.
In a Thursday interview with Reuters, Gundlach said that the so-called “Trump rally” in stocks was “losing steam.”
A DoubleLine spokesman directed calls for comment to a news release on the fund’s flows but declined to expand on the release.