Jeffrey Gundlach Blood Feud With Morningstar Part III Of III: MBS Ratings

Continued from Part II Managing risky (volatile) investments with noncorrelated risk (volatility) In a June 2010 Pensions and Investments magazine article, Gundlach outlined, in part, his unique approach to noncorrelated portfolio management: “Fortunately, a conjunction of phenomena in different bond sectors has created a unique opportunity: portfolios can be structured to deliver high cash flows within an envelope hedged against the antipodal risks of inflation as well as deflation. In the process, I believe investment professionals with the requisite skills can integrate hedges against interest-rate volatility and credit deterioration into the same portfolio,” he said, providing a glimpse of what…