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NEW YORK (Reuters) – Investors pulled $200 million from Jeffrey Gundlach’s DoubleLine Total Return Bond Fund in July, extending a monthly outflow streak that began in November, according to Morningstar data on Wednesday.
The fund, managed by the closely watched investor Gundlach and DoubleLine president Philip Barach, has posted outflows of $3.6 billion this year with total assets under management at $53.61 billion as of the end of July, the research service added.
The withdrawals are notable given that other bond funds are swimming in new cash from investors and as the DoubleLine fund’s performance has been strong.
Some $203 billion flowed into bond funds in the first half of 2017 and have not recorded a single week of outflows all year, according to the Investment Company Institute, a trade group.
DoubleLine Total Return Bond Fund’s lower-cost institutional shares were up 3.2 percent this year through Tuesday, beating its benchmark, according to data from Thomson Reuters’ Lipper research unit.
Gundlach, who started discussing his views on Twitter in May, sent a tweet early Wednesday saying that DoubleLine is a top-ranked fund company by net cash inflows this year through July.
Overall, the firm pulled $253 million into its mutual funds and ETFs during July and $2.5 billion this year, ranking 24th of 405 fund families, Morningstar data showed.
“Looks to me DBL Funds are growing significantly,” Gundlach wrote on his Twitter account @TruthGundlach.
Gundlach, who as chief executive officer at DoubleLine oversees more than $110 billion in assets, is known on Wall Street as the “Bond King.”
Last month, Gundlach sounded a bearish tone and told Reuters he expected gold prices to rise. He also said he initiated an options trade designed to profit if market volatility ramped up.
The CBOE Volatility Index has spiked from 9.4 on July 21 to 11.1 on Wednesday after U.S. President Donald Trump said North Korea “will be met with fire and fury” if the nuclear-armed nation threatens the United States.
In a recent interview with Reuters, Gundlach said DoubleLine was “trying to focus on our strategy: growing our other funds.” He was referring to the SPDR DoubleLine Total Return, DoubleLine Core Fixed-Income Fund, DoubleLine Shiller Enhanced CAPE, DoubleLine Low Duration Bond Fund, DoubleLine Infrastructure Income Fund and the DoubleLine Flexible Income Fund.
“We are marketing our other funds and not DBLTX,” Gundlach said. “We are accomplishing exactly what we planned.”
DoubleLine Funds president Ron Redell said in an emailed statement that “as our net inflows show, we continue to execute our business objective of manageable growth firmwide, with increasing diversification of our assets under management into our strong-performing line of equity and fixed income strategies.”
Reporting by Jennifer Ablan and Trevor Hunnicutt; Editing by James Dalgleish and Tom Brown