DoubleLine Capital

Last updated

DoubleLine Capital LP
Type Private
Industry Investment Management
FoundedDecember 2009;14 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]

Related Research Articles

<span class="mw-page-title-main">Fidelity Investments</span> American multinational financial services corporation

Fidelity Investments, commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.3 trillion in assets under management, and, as of December 2022, their assets under administration amount to $10.3 trillion. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, securities execution and clearance, asset custody, and life insurance.

An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. Many ETFs provide some level of diversification compared to owning an individual stock.

The Vanguard Group, Inc., is an American registered investment advisor based in Malvern, Pennsylvania, with about $7.7 trillion in global assets under management, as of April 2023. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, educational account services, financial planning, asset management, and trust services. Several mutual funds managed by Vanguard are ranked at the top of the list of US mutual funds by assets under management. Along with BlackRock and State Street, Vanguard is considered to be one of the Big Three index fund managers that play a dominant role in corporate America.

<span class="mw-page-title-main">Franklin Templeton Investments</span> Global investment firm founded in New York City in 1947

Franklin Resources, Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc. It is listed on the New York Stock Exchange under the ticker symbol BEN, in honor of Benjamin Franklin, for whom the company is named, and who was admired by founder Rupert Johnson Sr. In 1973, the company's headquarters moved from New York to San Mateo, California. As of October 12, 2020, Franklin Templeton held US$1.4 trillion in assets under management (AUM) on behalf of private, professional and institutional investors.

<span class="mw-page-title-main">PIMCO</span> US global investment management firm

PIMCO is an American investment management firm focusing on active fixed income management worldwide. PIMCO manages investments in many asset classes such as fixed income, equities, commodities, asset allocation, ETFs, hedge funds, and private equity. PIMCO is one of the largest investment managers, actively managing more than $2 trillion in assets for central banks, sovereign wealth funds, pension funds, corporations, foundations and endowments, and individual investors around the world. PIMCO’s headquarters are in Newport Beach, California; the firm has over 3,100 employees working in 22 offices throughout the Americas, Europe, and Asia. PIMCO and Allianz Global Investors manage around €2.5 trillion of third-party assets.

<span class="mw-page-title-main">BlackRock</span> American multinational investment management corporation

BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $9.42 trillion in assets as of June 30, 2023. Headquartered in New York City, Blackrock has 70 offices in 30 countries, and clients in 100 countries. BlackRock is the manager of the iShares group of exchange-traded funds, and along with The Vanguard Group and State Street, it is considered to be one of the Big Three index fund managers. Its Aladdin software keeps track of investment portfolios for many major financial institutions and its BlackRock Solutions division provides financial risk management services. BlackRock is ranked 184th on the Fortune 500 list of the largest United States corporations by revenue.

<span class="mw-page-title-main">Bridgewater Associates</span> U.S. based investment management firm

Bridgewater Associates, LP is an American investment management firm founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundations, foreign governments, and central banks. As of 2022, Bridgewater has posted the second highest gains of any hedge fund since its inception in 1975. The firm began as an institutional investment advisory service, graduated to institutional investing, and pioneered the risk parity investment approach in 1996.

<span class="mw-page-title-main">Oaktree Capital Management</span> American global asset management firm

Oaktree Capital Management is an American global asset management firm specializing in alternative investment strategies. As of March 31, 2023, the company managed $172 billion for its clientele.

State Street Global Advisors (SSGA) is the investment management division of State Street Corporation and the world's fourth largest asset manager, with nearly $4.14 trillion (USD) in assets under management as of 31 December 2021.

<span class="mw-page-title-main">PGIM</span> American Investment Management firm

PGIM, Inc. (PGIM), formerly known as Prudential Investment Management, functions as the asset management arm of Prudential Financial, an American life insurance company.

Crescent Capital Group is a global alternative investment firm focused on below investment grade credit markets with primary strategies that include funds that invest in leveraged loans, high-yield bonds, mezzanine debt, special situations, and distressed securities. The firm has approximately $40 billion of assets under management and has made investments in over 190 companies since its inception as well as expanded into the European market with operations based in London.

TCW Group is an asset management firm based in Los Angeles, California.

AdvisorShares Investments is a US-based investment management firm based in Bethesda, Maryland which offers actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. AdvisorShares partners with third party financial advisers who already manage clients’ assets to package their investment strategy using exchange-traded funds. As part of promoting its funds it also provides educational support to help financial advisors and investors understand actively managed ETFs and their underlying investment strategies.

<span class="mw-page-title-main">Amundi</span> French asset management firm

Amundi is a French asset management company. With €2 trillion of assets under management (AUM) at the end of 2021, it is the largest asset manager in Europe and one of the 10 biggest investment managers in the world.

Appaloosa Management is an American hedge fund founded in 1993 by David Tepper and Jack Walton specializing in distressed debt. Appaloosa Management invests in public equity and fixed income markets around the world.

Lee Thomas Kranefuss is an American businessman, investment manager, corporate adviser, and entrepreneur.

Jeffrey Edward Gundlach is an American businessman, investor, and philanthropist. He is the founder of DoubleLine Capital, an investment firm.

<span class="mw-page-title-main">Ark Invest</span> American asset management firm

ARK Investment Management LLC is an American investment management firm based in St. Petersburg, Florida, that manages several actively managed exchange-traded funds (ETFs). It was founded by Cathie Wood in 2014. At the height of February 2021, the company had $50 billion in assets under management. By May 2022, assets had dropped to $15.9 billion, after a period of poor performance.

Tianhong Asset Management Co., Ltd. is a Chinese asset management company founded in 2004. From 2014 it was considered the largest asset management company in China until 2021. Its most notable product is the Tianhong Yu’e Bao fund which at one point was the world's largest money market fund.

ExodusPoint Capital Management ("ExodusPoint") is an American investment management firm headquartered in New York City with additional offices in Europe and Asia. It currently holds the largest launch in history for hedge funds where it raised $8.5 billion in 2018 after it started accepting capital from external investors.

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.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.