DoubleLine Capital is creating a new trend fund that provides exposure to asset classes ranging from stocks and bonds to currencies, interest rates and commodities.
The DoubleLine Multi-Asset Trend Fund will seek returns similar to those of the BNP Paribas Multi-Asset Trend Index, according to a filing Friday with the U.S. Securities and Exchange Commission. The index tracks various asset classes through the use of futures contracts.
The fund, to be managed by Chief Investment Officer Jeffrey Gundlach and Deputy CIO Jeffrey Sherman, will rely primarily on swap contracts to emulate the index, according to the filing. Because swaps require little capital upfront, the fund will also invest in debt securities or DoubleLine fixed-income funds to generate incremental returns.
A representative of the firm didn’t immediately respond to a request for comment. DoubleLine Capital, based in Los Angeles, had more than $141 billion under management at the end of September.
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