It’s too soon for investors to wade back into energy and high-yield debt, even as markets show signs of recovering, according to DoubleLine Capital Portfolio Manager Jeffrey Sherman.

“For broad-based market exposure, I still think that the high-yield market has a little bit more pain in the mid-term,” Sherman, co-manager of the $761 million DoubleLine Shiller Enhanced CAPE fund, said in an interview with Bloomberg.

High-yield debt has lost 1.7 percent this year, according to the Bank of America Merrill Lynch U.S. High Yield Index. In 2015, the debt lost 4.6 percent.

Los Angeles-based DoubleLine Capital had $85 billion under management as of Dec. 31. The Shiller Enhanced CAPE fund, which Sherman co-manages with DoubleLine Chief Investment Officer Jeffrey Gundlach, blends investments in fixed-income and equity sectors and is down 1.8 percent this year, outperforming 92 percent of its peers, according to Bloomberg data.