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Are bond funds looking interesting to anyone...other than Jeff Gundlach?

beebee
edited March 2013 in Fund Discussions
Articles make the point that speculator are highy margined (long equities/short 30 yr Treasuries). Anyone reallocating to bonds at this time?

EDV and BTTRX are two investments that move quickly when markets turn and have benefitted from LT rates falling. Article also references Gundlach as bullish LT Treasuries.

the-case-for-buying-treasuries-now?

Also, using long dated treasuries as a hedge (volitility control) for you equity investments...a barbell approach:
treasuries-remain-effective-portfolio

Comments

  • AndyJ
    edited March 2013
    My designated equity hedge is PIGIX (fairly rate sensitive, but enough yield to keep it in the plus column so far this year), which I might add to if equities hit the late spring/summer doldrums.

    Also sold off a chunk of muni fund holdings in steps in late Feb/early March for the frequent March muni selloff (which has happened again this year), and will put it back in munis if their prices start to rise again in April like often happens.
  • prinx
    Bee
    I think that funds like BERIX , FPACX ,VWELX AND WVINX are especially good at this time. It is better to be in a balanced fund where experienced analysts are working all day long to make the right decision as to how to shift their portfolios ratio between stocks and bonds. Anyone of us could guess but I feel more comfortable to have them guess for me.
    prinx
  • MaxBialystockMaxBialystock
    Reply to @prinx: Yes, I see the sense that makes. My choice in that "balanced" category is MAPOX. Doing very nicely.

    ...I also own uncle Jeff Gundlach's DLFNX. It's in the black this year, but barely. I do believe JG certainly knows what he's doing. I'm not surprised that the fund is not lighting the world on fire, since rates have been creeping up from nowhere to just one step outside of nowhere...
  • prinx
    Max I agree and also hold MAPOX.

    I have grown to appreciate Balanced funds in the unsettling environment we are in now.
    Let the well paid experts earn their fees. IF you find a few good ones you can make a reasonable return but in bad times they will save you a lot with there watchful eyes.
    prinx
  • MaxBialystockMaxBialystock
    Right you are..... I'm still not sure I have a handle on what the point was, above, about Jeff Gundlach and bonds. Anyone care to say a bit more and enlighten me?
  • clacy
    Gundlach has recently become very bullish on US treasuries. His total return fund has been doing very well since launching it, so he has a nice handle on the bond market. He's one of the guys that when he talks, he's worth listening to.
  • MaxBialystockMaxBialystock
    Do you know enough to be able to make comparisons between DLFNX and DLTNX? Anyone? I can see the ytd and monthly and annual statistics at M*...... But about approach, holdings, regrettable purchases? Etc.?
  • scott
    No. I suppose if I thought they were I might do a trade with a Profunds or Rydex-style fund, but I'm trying to do less of that sort of thing. If I have to hold for 6 months, no. Gundlach may very well be right, but I don't want to try and time something I don't think has a good fundamental case mid-to-longer term. If Gundlach is right, hopefully I'll benefit to some degree with an investment in Doubleline through Oaktree (OAK)
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