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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.