(Adds more Gundlach comments, fund performance)
NEW YORK May 5 Jeffrey Gundlach, chief
executive and chief investment officer of DoubleLine Capital,
said on Monday that investors should bet against the SPDR S&P
Homebuilders ETF because he does not see the expected
rebound in single-family housing occurring.
Gundlach, speaking at the Sohn Investment Conference in New
York, said that problems dogging the housing market included
expected rises in mortgage rates and the amount of student loan
debt carried by young adults, which makes saving for a down
payment more challenging.
Gundlach said renting had become "massively more appealing"
while home ownership would continue to decline. He said there
was a "generational" preference for renting and that young
people in particular were "shocked and scarred" by the housing
If mortgage financiers Fannie Mae and Freddie Mac
were wound down by the government, mortgage rates
would rise, he said.
The Los Angeles-based DoubleLine Capital oversees roughly
$49 billion in assets. Gundlach's $32 billion DoubleLine Total
Return Bond Fund is up 3.39 percent this year, beating
69 percent of peers, according to Morningstar.
(Reporting by Sam Forgione; Editing by Leslie Adler and