(Bloomberg) The slump in U.S. stocks and muted rebound in Treasuries spells bad news for risk parity funds, according to Jeffrey Gundlach, chief investment officer of DoubleLine Capital. A 6.5 percent decline in the S&P 500 Index from its September high, coupled with a less than four basis point drop in the benchmark 10-year Treasury yield was bad for the popular hedge fund strategy, the bond manager said in a Twitter post after U.S. markets closed Tuesday.
Gundlach Warns Market Moves Bad for Risk-Parity Hedge Funds
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