In an excerpt from Orion's The Weighing Machine Podcast, recorded Mar.8, DoubleLine Portfolio Morris Chen discusses the DoubleLine Commercial Real Estate ETF (ticker DCRE) emphasizing its active management strategy and focus on Commercial Mortgage-Backed Securities (CMBS). DCRE aims to provide exposure to the commercial real estate market with attractive yields. Chen highlighted the importance of active management in selecting securities, understanding borrower behavior, and timing loan payoffs. The fund can be used to gain heavier exposure to CMBS compared to corporate bonds or serve as a shorter duration, cash-plus type of investment vehicle. The guiding philosophy of the fund is capital preservation through a value-driven, bottoms-up investment approach. Chen also noted that the CMBS sector is considered cheap, offering a reasonable entry point for investors. Additionally, Chen shared his favorite investment idea, self-storage properties, which he believes are resilient in stagflation or recessionary environments due to high barriers to homeownership and downsizing trends.
For important information about the fund, please click here: https://doubleline.com/funds/commercial-real-estate-etf/
Link to the DoubleLine Commercial Real Estate ETF prospectus: https://pex.broadridge.com/summary.asp?doctype=spro&cid=dbline&fid=25861R303
DoubleLine ETFs are distributed by Foreside Fund Services, LLC.
Mr. Chen joined DoubleLine at its inception in 2009. He is a Portfolio Manager leading the CMBS/CRE Debt Investment team and CRE New Investment Review Group, and is responsible for the oversight and management of all CRE Debt related investments at DoubleLine. Mr. Chen is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees providing valued insight into the CMBS sector. He is also an active participant and speaker at CREFC events. Prior to DoubleLine, Mr. Chen was a Vice President at TCW where he was responsible for CMBS credit analysis and trading from 2004-2009. He holds a BS in Business Administration with concentrations in Business Development and Finance from the University of California, Riverside.
