Administration January 12, 2010

Former TCW Fund Manager Registers New Funds

January 12, 2010 (PLANSPONSOR.com) - DoubleLine Capital LP, the money management firm started last month by star bond fund manager Jeffrey Gundlach, is gearing up to offer some new funds.
Reported by

DoubleLine Capital plans to open three new mutual funds for the general public, according to a registration statement filed on Tuesday, according to Reuters.      

Gundlach’s firm, opened last month after he was fired by Trust Company of the West, filed with the Securities and Exchange Commission to offer:

  • a fund focused on mortgage-backed securities,
  • a fund focused on debt from emerging market companies and
  • a broader “core” fixed-income fund.      

Within a month of firing Gundlach on December 4, TCW suffered the withdrawal of almost half the $12 billion of assets in the mutual fund Gundlach had run, according to the report.  Gundlach set up shop at DoubleLine shortly after he was fired and was joined by more than half his old team from TCW.      

According to Reuters, Gundlach was listed in the filing as the sole manager for the new “core” fund and co-manager, along with Philip Barach, of the mortgage-focused fund. Luz Padilla, was listed as the manager of the emerging markets bond fund. Both Barach and Padilla jumped to DoubleLine from TCW.      

Before leaving TCW in December, Gundlach and Barach ran the TCW Total Return Bond Fund.  Last week Trust Company of the West sued Gundlach, accusing him of stealing confidential data, lying to potential clients and keeping drugs and pornographic materials in his office.  TCW also said in the lawsuit that Gundlach was fired for threatening to take actions that would have jeopardized the firm’s ability to manage clients’ fixed income assets (see TCW Sues Former CIO).      

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