Fuss in an e-mail reaffirmed that he is sticking with his currency bets on the assumption that the U.S. dollar will at some point peak and decline.
“When something goes up and up, unless there is a completely new paradigm eventually it stops,” he said in an interview earlier this month.
MetWest’s Allocations
MetWest Total Return, which beat 94 percent of peers over the past five years, had 33 percent of its assets in mortgage- backed securities as of June 30 and another 26 percent in U.S. government bonds, according to the TCW Group website.
Rivelle, in an Aug. 24 interview with Bloomberg Radio, said years of aggressive monetary policy on the part of the Fed had not achieved the desired result.
“We have eased and eased yet growth has disappointed,” he said.
A message to TCW was not immediately returned.
Gundlach’s Mortgages
Gundlach, whose firm managed $76 billion as of June 30, said in January he did not expect the yield on the 10-year Treasury bond to top 2.6 percent. The yield reached its peak for the year June 10 when it hit 2.48 percent.
The manager extended the duration of DoubleLine Total Return between January and June, according to a firm presentation, which allowed him to benefit from the unexpected decline in rates over the past month. Duration is a measure of a bond’s sensitivity to changes in rates.