Jeff Gundlach Starts Own Firm With Oaktree Money, TCW Most Likely Furious
The big guns in LA are out swinging, with news emerging that Jeff Gundlach will get funding and a minority investment from of bond giant and other major TCW defector, Oaktree. Howard Marks' firm is now set to eat TCW's municipal lunch. And all the disciples of Robert Day had to do was promote the guy. Also, futures in the "Battle of the Attanasios"(Paul and Mark) just surged majorly in favor of the House creator. A good overview of Oaktree can be found here, courtesy of information disclosed in their recent $250 million bond offering.
Jeffrey Gundlach, the top-performing bond manager and chief investment officer who was fired by TCW Group Inc., started his own asset-management firm with financial and operational support from Oaktree Capital Management LP.
Oaktree, which was started by former TCW executive Howard Marks, will get a minority stake in Gundlach’s firm, DoubleLine LLC, the Los Angeles-based company said today in a statement.
DoubleLine, which has recruited more than 30 professionals from TCW since Gundlach left Dec. 4, didn’t disclose terms of its agreement with Oaktree.
TCW dismissed Gundlach, 50, after saying he threatened to quit and take some key professionals with him. Gundlach disputed that assertion. He oversaw $65 billion, or 59 percent of TCW’s assets, and specialized in mortgage-backed securities. TCW’s biggest mutual fund, the Total Return Bond Fund, has had $3.5 billion in investor withdrawals since Gundlach’s departure, the firm said on Friday.
“Gundlach is a very highly respected portfolio manager,”
Laurie Goodman, a mortgage-bond analyst in New York at Amherst Securities Group LP, said in an interview today with Bloomberg Radio. “We were all expecting him to resurface in fairly short order, and it’s nice to see he has done so.”
Marks and six other executives left Los Angeles-based TCW in 1995 to form their own firm in a move that TCW founder Ronald Day at the time called “disloyal at the very least.” Oaktree manages about $67.4 billion in investments including distressed debt, high-yield and convertible bonds, private equity and real estate.