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Gundlach says machines won't oust humans from finance industry

(Bloomberg) -- In the financial industry’s battle of humans versus machines, billionaire bond fund manager Jeffrey Gundlach is betting people will prevail.

“I don’t believe in machines taking over finance at all,” Gundlach, chief executive officer of DoubleLine Capital, said Thursday night in a cocktail-hour interview before his induction into the Fixed Income Analysts Society Inc.’s Hall of Fame.

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Jeffrey Gundlach. Photographer: Andrew Harrer/Bloomberg

Gundlach, 57, is a top-ranked money manager whose $54 billion DoubleLine Total Return Bond Fund has outperformed 90 percent of its Bloomberg peers over the past five years. He co-founded the Los Angeles-based firm, which managed more than $100 billion as of March 31, after being ousted by TCW Group in 2009.

Gundlach singled out so-called robo-advisers, which provide online portfolio management using little human intervention, as a dangerous bet.

“It’s a one-size-fits-all financial solution,” he said. “Everybody gets the same portfolio, which means everybody owns the same stock, which means when they all decide to get out you cause a crash.”

What’s Gundlach’s advice for beating machines?

“Work hard,” he said.

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