DoubleLine launches stock management division

NEW YORK, Wed Jan 2, 2013 — DoubleLine Capital LP, the $53 billion firm run by star bond investor Jeffrey Gundlach, said on Wednesday that it is now managing stock portfolios in a new division called DoubleLine Equity LP.

The firm, which surpassed $50 billion in bond assets last year after launching in 2009, said in a news release that it has tapped former TCW Group portfolio managers Brendt Stallings and Husam Nazer to expand its stock division.

Gundlach, DoubleLine’s chief executive officer and chief investment officer, hinted at the firm’s move into stocks in a webcast on Sept. 11, citing the broad disinterest in equities and their potential as a hedge against inflation.

The firm’s flagship DoubleLine Total Return Bond Fund earned a return of 9.2 percent in 2012, beating 97 percent of otherU.S.mortgage-focused funds, according to Lipper. The fund, which oversees $37.1 billion, took in $19.7 billion last year, making it the most popular mutual fund by asset growth.

Pacific Investment Management Co., the world’s largest bond fund manager with $1.92 trillion in assets as of September 30, 2012, began moving into equities when it launched its first actively managed stock mutual fund in 2010.

Stallings and Nazer were previously Group Managing Directors at TCW Group Inc., the highest title for managers at the firm, where they oversaw $5 billion in assets in stock portfolios.

Gundlach started DoubleLine in December of 2009 shortly after being fired as chief investment officer of TCW. TCW sued Gundlach after firing him, claiming that he stole trade secrets and violated his fiduciary duty to the firm. Gundlach responded with a countersuit and won $66.7 million in wages from TCW.

PIMCO, DoubleLine, TCW big winners from Fed’s QE3 assault

NEW YORK, Thu Sep 20, 2012 – The Federal Reserve’s move to stimulate the economy by buying mortgage securities is proving to be manna from heaven for three of the biggest players in the bond fund business: Pacific Investment Management Company, DoubleLine Capital and TCW.

The three investment firms all manage mutual funds that loaded up on mortgage-backed securities well before the Fed announced last Thursday that it would start buying $40 billion in government-backed mortgage debt each month until there’s a sharp improvement in the job market.

With U.S. Treasury yields at extraordinary low levels, bond investors like TCW, PIMCO and DoubleLine have migrated toward mortgage-backed securities as those securities not only provide higher yields but they perform well when interest rates are stable.

It is TCW’s flagship fund that is outperforming the ones managed by PIMCO co-founder Bill Gross and DoubleLine founder Jeffrey Gundlach – the two money managers seen as the reigning kings of the bond investing world.

The $7.4 billion TCW Total Return Bond Fund, which has more than 80 percent of its assets invested in mortgage-backed securities, is up 10.68 percent for the year.

The TCW fund is besting the 8.61 percent year-to-date return for the $272.5 billion PIMCO Total Return Fund – the world’s biggest bond fund – and the 7.89 percent return posted by the $32 billion DoubleLine Total Return Bond Fund.