Masters in Business Jeffrey Sherman on a Mathematician's Journey Into Finance
May 30, 2024
Jeffrey Sherman, Deputy Chief Investment Officer at DoubleLine Capital, discusses his journey from mathematics to finance, navigating excess savings, fiscal stimulus impact, consumer sentiment trends, challenges in the bond market, sector rotation strategies, and psychology in investing.
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From Pure Math To Financial Engineering
- Jeffrey Sherman switched from a PhD in applied mathematics to a master's in financial engineering after disliking teaching and pure math repetitiveness.
- He credits advisors who said you can teach mathematicians finance, which guided his career pivot into finance.
Long Tenure With One Team
- Sherman started his career as an intern at TCW in 2001 and stayed with much of the same team for 25 years.
- He later joined Jeff Gunlock's team and eventually followed him to DoubleLine, keeping long-term professional relationships.
Why 2009 Mortgage Discounts Were Rewarding
- Buying deeply discounted mortgage securities in 2009 offered outsized IRRs because coupons divided by price produced large current yields.
- Sherman stressed running assets through draconian loss scenarios to validate their upside at distressed prices.