- Gundlach’s firm says desire for change stronger than expected
- Manager said last week he expected ‘Remain’ side to prevail
DoubleLine Capital, the $100 billion asset manager run by Jeffrey Gundlach, said it will look for opportunities in select markets following the selloff triggered by the U.K. referendum to exit the European Union.
“The Brexit outcome suggests the public mood for change is even greater than we had thought,” the Los Angeles-based firm said in a statement posted on its website Friday. “While the referendum result triggered selling in U.S. stocks and widening in credit spreads, and much greater repricings in risk assets on the Continent, we continue to emphasize capital protection while looking to take advantage of dislocations in select markets.”
Gundlach, whose $60 billion flagship DoubleLine Total Return Bond Fund is up 2.5 percent this year, said in a June 14 webcast that he expected U.K. voters would choose to remain in the trade bloc. He sold all his European stocks Thursday before the votes were counted, taking advantage of a strong rally over the previous week, he told Reuters on Friday.
Investors should consider capital preservation by putting their money in cash, gold or Treasuries while avoiding U.S. stocks, Gundlach said in a CNBC interview.