McGowan Group Sells 319,882 Shares of DoubleLine Income Solutions Fund, Reducing Position by $3.93 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Reduction Dynamics: McGowan Group sold 319,882 shares of the DoubleLine Income Solutions Fund during Q3 for approximately $3.93 million, reducing its position to 2.91 million shares with a market value of $35.69 million, indicating a cautious stance towards the fund.
- Asset Allocation Shift: This sale decreased DSL's representation in McGowan's assets under management from 4.97% to 4.42%, reflecting a reassessment and adjustment of their fixed income asset strategy.
- Market Performance Analysis: As of Tuesday, DSL shares were priced at $11.27, down 10% over the past year, significantly underperforming the S&P 500's 17% gain, indicating a lack of market confidence in the fund.
- Yield Advantage: Despite the reduction, DSL maintains a high dividend yield of 11.7%, appealing to income-seeking investors, although its high leverage and tilt towards below-investment-grade credit could amplify risks during market volatility.
DSL
$11.3+Infinity%1D
Analyst Views on DSL
Wall Street analysts forecast DSL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DSL is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About DSL
DoubleLine Income Solutions Fund (the Fund) is a diversified, closed-end management investment company. The Fund’s primary investment objective is to seek high current income and its secondary objective is to seek capital appreciation. The Fund seeks to achieve its investment objectives by investing in a portfolio of investments selected for their potential to provide high current income, growth of capital, or both. The Fund may invest in debt securities and other income-producing investments anywhere in the world, including in emerging markets. The Fund may invest in mortgage-backed securities of any kind and may invest without limit in securities rated below investment grade. The Fund may invest in asset-backed securities that are not mortgage-backed securities, and in pools of loans through mortgage- or other asset-backed securities where a trust or other entity issues interests in the loans. The investment advisor of the Fund is DoubleLine Capital LP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
