DoubleLine's Gundlach: Trump has 'massively outperformed' expectations

November 8, 2016 5:55 PM EST

Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital LP., speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016. REUTERS/Brendan McDermid

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By Jennifer Ablan

NEW YORK (Reuters) - Jeffrey Gundlach, the chief executive of DoubleLine Capital, said Tuesday that Donald Trump has "massively outperformed" expectations during the presidential election campaign.

"I think we can all agree that Donald J. Trump has massively outperformed expectations in the past," Gundlach said on an investor webcast, ahead of final results from Tuesday's election.

Gundlach, who runs more than $106 billion of assets at Los Angeles-based DoubleLine, did not repeat his prediction that Trump would win.

Gundlach, who had been one of the first investors to forecast Trump as the Republican nominee, said: "When Trump was just an asterisk in the polls, I said he was a tremendously undervalued asset."

Gundlach, known on Wall Street as the "Bond King," said he will wait for stock markets to open on Wednesday to figure out whether investors will extend Monday and Tuesday's rally. The upward move in equities came after the S&P 500 index finished lower on Friday for the ninth straight session, its longest stretch of declines since December 1980.

Earlier this month, Gundlach said, "We got the bearish signal" after the S&P 500 dropped below 2,130 for two consecutive days.

But Gundlach said on the webcast Tuesday: "We had a huge rally yesterday on the (FBI Director James) Comey flip-flop, flip-flop," referring to Comey's announcement on Sunday that a review of a new trove of emails found no grounds for criminal charges. "I don’t know if I’d call this a sell-off anymore."

(Reporting By Jennifer Ablan; Editing by Jonathan Oatis)

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