Jeffrey Gundlach not impressed with robo advisers

He says 'one-size fits all' portfolios are a dangerous bet, especially in a market decline
JUN 23, 2017
By  Bloomberg

In the financial industry's battle of humans versus machines, billionaire bond fund manager Jeffrey Gundlach is betting people will prevail. "I don't believe in machines taking over finance at all," Mr. Gundlach, CEO of DoubleLine Capital, said Thursday night in a cocktail-hour interview before his induction into the Fixed Income Analysts Society Inc.'s Hall of Fame. Mr. Gundlach, 57, is a top-ranked money manager whose $54 billion DoubleLine Total Return Bond Fund has outperformed 90 percent of its Bloomberg peers over the past five years. He co-founded the Los Angeles-based firm, which managed more than $100 billion as of March 31, after being ousted by TCW Group in 2009. Mr. Gundlach singled out so-called robo-advisers, which provide online portfolio management using little human intervention, as a dangerous bet. "It's a one-size-fits-all financial solution," he said. "Everybody gets the same portfolio, which means everybody owns the same stock, which means when they all decide to get out you cause a crash." What's Mr. Gundlach's advice for beating machines? "Work hard," he said.

Latest News

UBS profit beats estimates as Ermotti sees brighter outlook
UBS profit beats estimates as Ermotti sees brighter outlook

Wealth management unit sees inflows of $23 billion.

Evercore to buy advisory firm Robey Warshaw for $196 million
Evercore to buy advisory firm Robey Warshaw for $196 million

Deal will give US investment bank a foothold in lucrative European market.

Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever
Gates and Buffett’s Giving Pledge is 15 years old, but many signatories are richer than ever

New report examines the impact that the initiative has had on philanthropy.

Americans stay the course on 401(k) savings despite inflation fears
Americans stay the course on 401(k) savings despite inflation fears

Few feel confident that they will meet their retirement goals.

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.