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Commentary
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Dec 2024

Low Duration Bond Fund - Quarterly Fund Review

The fourth quarter of 2024 marked a reversal from the third quarter, as longer-duration and higher-rated sectors underperformed shorter-duration and lower-rated cohorts, driven primarily by rising U.S. Treasury rates. (Figure 1) Falling prices for Treasuries, Agency mortgage-backed securities (MBS) and investment grade (IG) corporate bonds contributed to a negative 3.06% return for the Bloomberg US Aggregate Bond Index (the “Agg”). In November, the U.S. election resulted in a changing of the guard, as Kamala Harris was defeated by Donald Trump, and all eyes turned to the incoming administration’s policy proposals, notably, pro-growth policies which further increased Treasury yields. For the quarter, the two year Treasury yield rose 60 basis points (bps), the five-year rose 82 bps, the 10-year rose 79 bps, and the 30-year bond yield rose 66 bps. Securitized and corporate credit spreads broadly tightened, and credit curves flattened.

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Dec 2024

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ABOUT THE PORTFOLIO MANAGERS

ABOUT THE PORTFOLIO MANAGERS

  • Jeffrey Gundlach

    CEO-CIO
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    Jeffrey Gundlach

    CEO-CIO

    Mr. Gundlach is CEO of DoubleLine.  In 2011, he appeared on the cover of Barron's as "The New Bond King."  In 2013, Institutional Investor named him "Money Manager of the Year."  In 2012, 2015 and 2016, he was named one of "The Fifty Most Influential" in Bloomberg Markets.  In 2017, he was inducted into the FIASI Fixed Income Hall of Fame.  Mr. Gundlach is a summa cum laude graduate of Dartmouth College, with degrees in Mathematics and Philosophy.

  • Jeffrey Sherman, CFA

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    Jeffrey Sherman, CFA

    As DoubleLine’s Deputy Chief Investment Officer, Jeffrey Sherman oversees and administers DoubleLine’s Investment Management sub-committee coordinating and implementing policies and processes across the investment teams. He also serves as lead portfolio manager for multi-sector and derivative-based strategies. Mr. Sherman is a member of DoubleLine’s Executive Management and Fixed Income Asset Allocation Committees. He can be heard regularly on his podcast “The Sherman Show” (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) where he interviews distinguished guests, giving listeners insight into DoubleLine’s current views. In 2018, Money Management Executive named Jeffrey Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. He was a statistics and mathematics instructor at both the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the CFA LA/USC Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from the Claremont Graduate University. Mr. Sherman is a CFA® charterholder.

  • Robert Cohen, CFA

    Global Developed Credit
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    Robert Cohen, CFA

    Global Developed Credit

    Mr. Cohen joined DoubleLine’s Global Developed Credit (“GDC”) Group in 2012. He is a Portfolio Manager and the Director of the GDC group. He is also a permanent member of the Fixed Income Asset Allocation Committee. Prior to DoubleLine, Mr. Cohen was a Senior Credit Analyst at West Gate Horizons Advisors (and its predecessor ING Capital Advisors) where he worked as an Analyst covering bank loans and high yield bonds. Prior to ING, he was an Assistant Vice President in the Asset Management Group of Union Bank where he managed a diversified portfolio of leveraged loans as well as a portfolio of CDO securities. Previous to Union Bank, he was an Associate Director of Corporate and Investment Banking at the Bank of Montreal in its Natural Resources Group. Mr. Cohen holds a B.A. in Economics from the University of Arizona and an MBA from the University of Southern California. He is a CFA® charterholder.

  • Luz Padilla

    International Fixed Income
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    Luz Padilla

    International Fixed Income

    Ms. Padilla joined DoubleLine in 2009 as the Director of the Emerging Markets Fixed Income team and is the lead Portfolio Manager. In addition, she is a permanent member of the Fixed Income Asset Allocation Committee. Prior to DoubleLine, Ms. Padilla was a Managing Director at TCW. She began working at TCW in 1994, where she served in a number of roles including Credit Analyst, Director of Research, Co-Portfolio Manager, and lead Portfolio Manager. Ms. Padilla was involved in all aspects of building and managing TCW’s Emerging Markets Fixed Income business including credit, securitization, trading and marketing. She holds a B.A. in Economics from Stanford University and MBA from the University of California, Berkeley, as a fellow of the Robert A. Toigo Foundation.