In many ways, this fund appears similar to a lazy portfolio or an Ivy Portfolio – a broadly diversified fund that seeks to benefit from the potential growth and correlations (often inverse) of differing assets. It removes stock picking (which I love), focuses on protecting the downside (by maintaining healthy cash levels) and utilizes a unique expertise in risk management and fixed income to generate high risk adjusted returns. Mr. Gundlach elaborated on some of the bigger themes that drive growth:
- When he doesn’t like markets he prefers to just get out (into cash).
- The equity portion is not based on stock picking. He sees stock picking as a waste of time and prefers to focus on sectors, industries & indices.
- Capital preservation is just as important as portfolio growth.
- You can see the composition below: