NEW YORK Feb 12 Jeffrey Gundlach, chief
executive and chief investment officer of DoubleLine Capital,
said on Wednesday that his firm had sold some Apple Inc.
shares and that the U.S. Federal Reserve may not end
its bond buying this year.
Gundlach also told CNBC television that Puerto Rico's bonds
Gundlach told CNBC that he did not see Apple's stock price
heading much higher. He bought Apple shares at around $405 a
share and told Reuters last November that the company's shares
were a "good diversifier."
"The most recent move we did was to sell some Apple, simply
because I just don't see it going much higher than $550,"
Gundlach said he still owned "a little bit" of Apple stock.
Apple shares traded up 0.1 percent at $536.66 in afternoon
Gundlach, who manages the roughly $31 billion DoubleLine
Total Return Bond Fund, has made a series of prescient
calls on global equity markets. In 2012, Gundlach correctly
predicted that Apple shares would fall to $425.
His flagship mutual fund is up 2.21 percent this year,
beating 99 percent of peers, according to Morningstar data.
Gundlach also told CNBC that market volatility may prevent
the Fed from ending its bond buying program this year.
In her first public comments as Fed chief on Tuesday, Chair
Janet Yellen emphasized continuity in the central bank's policy
strategy of cutting asset purchases by $10 billion a month.
"My suspicion, though, is they will not end QE (quantitative
easing) in 2014," Gundlach said.
Gundlach said that the yield on the benchmark 10-year U.S.
Treasury note could fall to 2.5 percent or lower, and that
sentiment toward the securities could shift from negative to
positive. The 10-year note was down 12/32 in price to yield
2.761 percent late on Wednesday.
Gundlach had comforting words for investors in Puerto Rican
On Tuesday, Fitch Ratings cut Puerto Rico's credit rating to
junk, making it the third major ratings agency in a week to
downgrade the U.S. commonwealth.
"If you really want to make some money but aren't afraid of
losing a little sleep at night, I think that Puerto Rico bonds
are fine," Gundlach said.
The Los-Angeles-based DoubleLine Capital had over $47
billion in assets as of Dec. 31, 2013, according to the firm's