TCW Total Return Bond I
Investing in mortgages is another way to play the real estate market. And one fund that has been posting top returns in the sector is TCW Total Return Bond I (MUTF:TGLMX). For the past year, the gain was 13.13%.
Yet the fund’s managers — who include Mitchell Flack, Tad Rivelle and Bryan Whalen — have been willing to ramp up their appetite for risk. That is, they’ve invested heavily in nonagency residential mortgages. Then again, if the U.S. economy does pull off a sustainable recovery, these securities are likely to continue strong.
The management team also is rigorous with its analysis. For example, it has created a custom model that looks at loan modifications, which can be a big source of risk.