DoubleLine Capital

Last updated

DoubleLine Capital LP
Company type Private
Industry Investment Management
FoundedDecember 2009;15 years ago (2009-12)
Founder Jeffrey Gundlach
Headquarters Tampa, Florida, U.S.
Key people
Jeffrey Gundlach (CEO and CIO)
Products Mutual funds
Closed-end funds
Exchange-traded funds
UCITS
AUM US$91.2 billion (March 2023)
Owners Oaktree Capital Management (20%)
Number of employees
284 (March 2023)
Website doubleline.com
Footnotes /references
[1]

DoubleLine Capital ("DoubleLine") is an American investment management firm headquartered in Tampa, Florida. It is known for its focus on investing in the bond market but also invests in other asset classes such as equities and commodities. The firm is majority owned by its employees.

Contents

Background

Jeffrey Gundlach was employed at TCW Group where he managed its Total Return Bond Fund which at the time was one of the top performing funds in the last 10 years that invested in intermediate-term bonds. It produced returns that exceeded those that were managed by Bill Gross. On 4 December 2009, he was fired by TCW and was alleged to be engaged in gross misconduct by plotting to take TCW's clients and trade secrets to establish his own rival firm. It was noted that the relationship between Gundlach and senior members such as Marc Stern and Robert Addison Day had deteriorated before then. [2] [3] [4] [5] [6]

In December 2009, shortly after leaving TCW, Gundlach, Philip Barach and 14 senior members of their team set up DoubleLine Capital in Los Angeles, California. The name DoubleLine came from a painting by Piet Mondrian called Double Line. Gundlach and Barach reached out to Howard Marks who was the co-founder of Oaktree Capital Management as well as a former employee of TCW who knew them during their time there. Oaktree Capital Management invested $20 million in DoubleLine for a 20% stake. On 23 December, DoubleLine registered with the Securities and Exchange Commission. [2] [3] [4] [5] [6] [7]

On 7 January 2010, TCW sued Gundlach with DoubleLine being named as a defendant in the case. TCW alleged that Gundlach and the firm stole its company secrets and clients. 45 out of 65 of Gundlach's old TCW team had joined DoubleLine. Gundlach countersued TCW stating it owed him millions in unpaid compensation. By December 2011, the lawsuit was settled. TWC prevailed on the trade secret case but the jury awarded nothing for the damages. An undisclosed settlement was reached between Gundlach and TCW. Gundlach prevailed on the unpaid compensation case and the jury awarded him and three other former TCW employees $66.7 million in unpaid wages. [2] [3] [4] [5] [6]

On 6 April 2010, DoubleLine started accepted investor money and launched its own Total Return Fund which was managed by Gundlach himself. By December that year, the firm had over $7 billion in assets under management. [2] [6]

In July 2011, DoubleLine launched its first closed-end fund, the DoubleLine Opportunistic Credit Fund which was managed by Gundlach himself. [8]

By November 2012, DoubleLine was managing $50 billion. [2] [9]

In January 2013, DoubleLine established a new division that would manage equity portfolios called DoubleLine Equity LP. [10]

It was reported that after the 2016 United States presidential election, Gundlach who voted for Donald Trump and predicted his victory forwarded an email to DoubleLine employees with an image of Trump smiling in front of a garbage truck carting Hillary Clinton and Barack Obama away. The image angered some of the employees, who felt it blurred the line between politics and business. [11]

In 2019, the firm experienced a number of high level staff departures which was considered uncharacteristic. During this period DoubleLine's performance had dropped however it had over $140 billion in assets under management. [12] [13]

In February 2022, DoubleLine moved its headquarters from Los Angeles to Tampa, Florida due to its tax laws. [14]

In April 2022, DoubleLine launched its first two exchange-traded funds (ETF), the DoubleLine Opportunistic Bond ETF and the DoubleLine Shiller CAPE US Equities ETF. Prior to that, DoubleLine served as sub-advisor to ETFs offered by State Street Global Advisors and AdvisorShares. [15]

In April 2023, one year after its ETF debut, DoubleLine moved into the real estate ETF market, launching the DoubleLine Commercial Real Estate ETF and the DoubleLine Mortgage ETF. [16] [17]

Investment funds

FundVintage YearCapital ($m)
DoubleLine Core Fixed Income N (DLFNX) [18] 2010$6,600
DoubleLine Total Return Bond I (DBLTX) [19] 2010$30,200
DoubleLine Emerging Markets Fixed Inc N (DLENX) [20] [21] 2010$455.5
DoubleLine Low Duration Bond I (DBLSX) [22] 2011$5,700
DoubleLine Floating Rate N (DLFRX) [23] 2013$183
DoubleLine Flexible Income I (DFLEX) [24] 2014$1,000
Doubleline Selective Credit I (DBSCX) [25] 2014$532
DoubleLine Global Bond N (DLGBX) [26] 2015$145
DoubleLine Strategic Commodity I (DBCMX) [27] 2015$141
DoubleLine Infrastructure Income I (BILDX) [28] 2016$374,400
DoubleLine Infrastructure Income N (BILTX) [29] 2016$374,400
DoubleLine Emerging Markets Fixed Inc I (DBLEX) [30] 2019$455,500
DoubleLine Core Fixed Income R6 (DDCFX) [31] 2019$6,600
DoubleLine Multi-Asset Trend N (DLMOX) [32] 2021$12.3

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References

  1. ↑ "Form ADV" (PDF). SEC.
  2. 1 2 3 4 5 "From zero to $150 billion: The inside story of Jeffrey Gundlach's decade at DoubleLine". Yahoo Finance. Retrieved 5 April 2023.
  3. 1 2 3 "Jeffrey Gundlach, Bond Savant". Bloomberg.com. 11 May 2012. Retrieved 5 April 2023.
  4. 1 2 3 "TCW's Stern Says He Fired Gundlach Because Firm Was 'Threatened'". Bloomberg.com. 19 August 2011. Retrieved 5 April 2023.
  5. 1 2 3 "TCW, Gundlach Settle Suit Over Firing, Trade Secret Theft Claims". Bloomberg.com. 30 December 2011. Retrieved 5 April 2023.
  6. 1 2 3 4 Laing, Jonathan R. "The King of Bonds". www.wsj.com. Retrieved 5 April 2023.
  7. ↑ Bryan, Bob. "Howard Marks made $900 million from his investment in 'Bond King' Jeff Gundlach". Business Insider. Retrieved 5 April 2023.
  8. ↑ Ovide, Shira. "Bond Star Jeffrey Gundlach to Launch New Fund". WSJ. Retrieved 5 April 2023.
  9. ↑ "High-profile bond firm DoubleLine hits $50 billion in assets". Reuters. 14 November 2012. Retrieved 5 April 2023.
  10. ↑ "DoubleLine launches stock management division". Reuters. 2 January 2013. Retrieved 5 April 2023.
  11. ↑ Grind, Gregory Zuckerman and Kirsten. "Investors Pull Back From Gundlach's Biggest Fund at DoubleLine". WSJ. Retrieved 5 April 2023.
  12. ↑ Childs, Mary. "Jeffrey Gundlach's investment firm DoubleLine suffers spate of departures". www.fnlondon.com. Retrieved 5 April 2023.
  13. ↑ Childs, Mary. "Jeffrey Gundlach's DoubleLine Sees Spate of Departures". www.barrons.com. Retrieved 6 April 2023.
  14. ↑ "Gundlach Moves DoubleLine Unit to Tax-Free Florida". Bloomberg.com. 24 February 2022. Retrieved 5 April 2023.
  15. ↑ "DoubleLine debuts two actively managed ETFs". ETF Strategy. 8 April 2022. Retrieved 5 April 2023.
  16. ↑ "Gundlach's DoubleLine Launches Real Estate and Mortgage ETFs at Tricky Time". Bloomberg.com. 4 April 2023. Retrieved 6 April 2023.
  17. ↑ Katherine Greifeld (11 April 2023). "DoubleLine Says 'Perfect Time' for New Real Estate ETF Despite Property Worries". Bloomberg. Retrieved 19 May 2023.
  18. ↑ "DLFNX – DoubleLine Core Fixed Income N Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 25 November 2024.
  19. ↑ "DBLTX – DoubleLine Total Return Bond I Fund Stock Price | Morningstar". Morningstar, Inc. 14 June 2024. Retrieved 22 November 2024.
  20. ↑ "DLENX – DoubleLine Emerging Markets Fixed Inc N Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 21 November 2024.
  21. ↑ "DoubleLine Emerging Markets Fixed Income Fund". doubleline.com. 30 January 2017. Retrieved 21 November 2024.
  22. ↑ "DBLSX – DoubleLine Low Duration Bond I Fund Stock Price | Morningstar". Morningstar, Inc. 31 October 2024. Retrieved 25 November 2024.
  23. ↑ "DLFRX – DoubleLine Floating Rate N Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 27 November 2024.
  24. ↑ "DFLEX – DoubleLine Flexible Income I Fund Stock Price | Morningstar". Morningstar, Inc. 19 September 2024. Retrieved 13 November 2024.
  25. ↑ "DBSCX – Doubleline Selective Credit I Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 29 November 2024.
  26. ↑ "DLGBX – DoubleLine Global Bond N Fund Stock Price | Morningstar". Morningstar, Inc. 31 October 2024. Retrieved 10 December 2024.
  27. ↑ "DBCMX – DoubleLine Strategic Commodity I Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 27 November 2024.
  28. ↑ "BILDX – DoubleLine Infrastructure Income I Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 6 November 2024.
  29. ↑ "BILTX – DoubleLine Infrastructure Income N Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 6 November 2024.
  30. ↑ "DBLEX – DoubleLine Emerging Markets Fixed Inc I Fund Stock Price | Morningstar". Morningstar, Inc. 30 September 2024. Retrieved 13 November 2024.
  31. ↑ "DDCFX – DoubleLine Core Fixed Income R6 Fund Stock Price | Morningstar". Morningstar, Inc. 31 October 2024. Retrieved 10 December 2024.
  32. ↑ "DLMOX – DoubleLine Multi-Asset Trend N Fund Stock Price | Morningstar". Morningstar, Inc. 31 October 2024. Retrieved 27 November 2024.
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