Jeffrey Gundlach: TCW Galileo Total Return Bond Fund

This fund manager finds bargains in unusual places. That ability has put him on our list four times running

Mortgage-backed securities are the most complex and misunderstood of the fixed-income instruments, says Jeffrey Gundlach, one of the two co-managers of the $477 million TCW Galileo Total Return Bond Fund (TGLMX). But where others shy away, Gundlach sees the market's rampant inefficiency leading to tremendous investing opportunities. His fund, a Standard & Poor's/BusinessWeek best fund manager selection for the fourth consecutive year, earned an average total return of 6.4% a year over the 2001-05 period, better than most peers and with less risk, according to S&P.

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