Gundlach Hedge Fund Up 28% Since September

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...