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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note