Saturday, 27 August 2016
Last updated 6 hours ago
Jul 20 2011 | 1:12pm ET
Former TWC Group chief investment officer Jeffrey Gundlach may be facing a civil trial against his former employer this month, but that's not affecting his investors.
Gundlach's 10-month old hedge fund at his new firm, DoubleLine Capital, has returned 28% since its debut in September. The fund, which has bet heavily against mortgage-backed securities, is up 16% in the first half of this year.
"People are so used to the housing market being lousy, they're not even noticing how bad it is anymore," Gundlach told investors on a July 12 conference call, Bloomberg News reports.
DoubleLine's $566 million hedge fund isn't the only one of its funds doing well. The firm's flagship Total Return Bond Fund is up 13% over the past 12 months.
Gundlach founded Los Angeles-based DoubeLine after being ousted from TCW in 2009. TCW has accused Gundlach and DoubleLine of breach of contract and fiduciary duty, unfair competition and conspiracy. The firm also claims that, after it fired Gundlach, it found marijuana, drug paraphernalia and a variety of “hardcore” pornography and “sexual devices” in his office. Gundlach has since countersued. The trial is set to begin later this month.