DoubleLine CAPE® and Fortune 500 Strategies to Diversify Stock Exposure in a Concentrated Market

EmitenTrust.com TAMPA, Fla., Oct. 8, 2026 /PRNewswire/ -- A new DoubleLine paper proposes a choice of valuation and equal-weight strategies to complement investors' exposure to the S&P 500 given the index owes nearly 40% of its market cap to the information technology sector and more than 40% to its 10 largest-cap companies.

The paper, authored by DoubleLine Portfolio Manager Eric Dhall and Asset Allocation Strategist Ryan Kimmel and titled "Diversifying U.S. Equity Exposure in a Concentrated Market," can be downloaded here: https://doubleline.com/wp-content/uploads/DoubleLine_Diversifying-Equity-Exposure_October-2026.pdf

"Market concentration alone does not necessarily signal an impending correction," the authors write, acknowledging many market leading companies enjoy strong fundamentals. Investors, however, should consider complementary investment strategies to lessen their equity allocation's bet "on the continued outperformance of a few select companies and one sector. The winners of the past are not always the winners of the future, particularly when the winners are trading at material valuation premiums."

Messrs. Dhall and Kimmel recommend investors consider two equity investment strategies, either apart or together, that depart from passive replication of market-capitalization-weighted indexes such as the S&P 500.

DoubleLine offers equity investment strategies that implement the Shiller Barclays CAPE® U.S. Sector Total Return Index (CAPE®). CAPE® systematically allocates to relatively inexpensive sectors with positive momentum, reallocating and/or rebalancing on a monthly basis.

In contrast to the sector-level valuation approach of the CAPE®, the DoubleLine also offers a strategy that implements the Barclays Fortune 500 Equal Weighted Total Return Index (Barclays Fortune 500). The Barclays Fortune 500selects individual stocks at the company level, equally weighting companies in the Fortune 500 universe, a selection set based on revenue, not market capitalization.

"Strategies based on CAPE®, the Barclays Fortune 500 or both are not replacements for cap-weighted exposure; they are strategic complements," DoubleLine's Dhall and Kimmel write. CAPE® diversifies valuation risk; Barclays Fortune 500 diversifies single-company concentration risk."

Terms and Definitions

Market Capitalization (market cap) – Total U.S. dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share.

About DoubleLine

DoubleLine Capital is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine Capital and its related entities ("DoubleLine") manage approximately $97 billion in assets across all vehicles, including open-end mutual funds, collective investment trusts, closed-end funds, exchange-traded funds, hedge funds, variable annuities, UCITS and separate accounts. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by email at info@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.

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SOURCE DoubleLine