Interval funds advertised to retail investors via financial intermediaries created an illusion of liquidity (withdrawals allowed every quarter), but disclosure only noted the restriction applies at the fund level (5% per quarter), not the investor level, creating widespread misunderstanding and now forcing redemption gates.

factualpending

Speaker

Jeff Gundlach

Evidence Quote

they created an illusion of liquidity on these interval funds that has completely fallen apart. I mean, as of December 31st, everyone I think a lot of people that bought these products through financial intermediaries, I think they were led to believe they'd get all their money out every quarter. They didn't they didn't focus on the fact that it's at the fund level, not at the investor level. So, it's only 5% and so suddenly people say, 'Wait a minute. I thought I could get out and I can't get out.'

Source

Jeffrey Gundlach and Felix Zulauf: The Second Inning of a Major ShiftDoubleLine Capital
Created: 8/12/2026, 6:25:56 PM

My Notes

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