The DoubleLine management team invests in classic value opportunities in low-multiple stocks of companies with temporarily depressed earnings. Additionally, the managers will screen for quality value opportunities in durable or disruptor franchises. They argue that quality value opportunities are usually invisible under a classic value lens.
“The firm has made very good macro calls and has a lot of expertise around interest rates, around the credit cycle, around the dollar, around commodities; and these are all inputs into our models and our processes – value investors, so we think that gives us a tremendous advantage,” Checcone added.
Current top sector weights include financials 24%, healthcare 19%, information technology 10%, energy 10% and communication services 9%. Top holdings include Verizon Communications 4%, JPMorgan Chase & Co 3.1%, US Foods Holding 3.0%, Dollar General 2.9% and Comcast 2.9%.
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