RiverNorth launches second fund with Gundlach’s DoubleLine Capital

Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital, speaks at the Sohn Investment Conference in New York

NEW YORK (Reuters) – RiverNorth Capital Management on Wednesday said it has partnered again with Jeffrey Gundlach’s DoubleLine Capital to launch a second portfolio, the RiverNorth/DoubleLine Strategic Opportunity Fund.

The closed-end fund, which debuted last week on the NYSE under the symbol “OPP,” will invest in fixed-income securities and tactically invests in closed-end funds. RiverNorth serves as the fund’s investment adviser and DoubleLine serves as sub-adviser to the fund.

Since December 2010, RiverNorth and DoubleLine have co-managed an open-end mutual fund, the RiverNorth/DoubleLine Strategic Income Fund (RNSIX).

Patrick Galley, RiverNorth’s chief investment officer, said in a statement, about the RiverNorth/DoubleLine Strategic Opportunity Fund: “The fund will leverage RiverNorth’s and DoubleLine’s long performance track records across market cycles and history of working together to capitalize on market inefficiencies in both the closed-end fund and fixed income markets.”

The fund seeks to achieve its investment objective of current income and overall total return by allocating among two principal investment strategies: the Tactical Closed-End Fund Income Strategy, managed by RiverNorth, and the Opportunistic Income Strategy, managed by DoubleLine.

Jeffrey Gundlach, CEO and chief investment officer of DoubleLine, said: “Our respective teams have experience not only in bottom-up security selection but also in working successfully together to manage sector allocations to tap undervalued and avoid overvalued market segments.”

The fund raised gross proceeds of approximately $210 million in its initial public offering of shares of common stock and, should the underwriters exercise the overallotment option in full, which may or may not occur, the fund will raise gross proceeds of approximately $242 million.

(Reporting By Jennifer Ablan; Editing by Bernard Orr)