Jeff Gundlach just wrapped up his most recent conference call and to be honest, he didn’t say anything all that new, shocking or interesting. He hit all the same bullet points that he’s been hammering home for the last few months – buy Ginnie Mae’s, buy his funds, the US government is a debt bloated pig, Europe is screwed, recession risk is high, etc.
But in the conference call presentation there was a future call highlighted with David Harding who runs Winton Capital. For those who don’t know Winton they’re a huge trend following firm based in the UK. Their risk adjusted returns over the last 20 years have been spectacular. They’re an algo/quant based system that trades a highly diverse portfolio. Of course, if you’re not an accredited investor you can’t get into their funds, but Altegris has teamed up with Winton to create a new fund. Interestingly, DoubleLine is serving as a sub-advisor to the new fund.
The fees look really hefty at 3%+ so outperformance is going to be very very difficult over the long-term, but it’s an interesting product that will be worth learning more about. The combination of managed futures and Gundlach’s fixed income approach has the potential to generate significant alpha in a non-correlated approach. It will be a call worth listening to….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.