NEW YORK Jan 2 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 other U.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
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.
Private equity firm Carlyle Group struck a deal last August
to buy a 60 percent stake in TCW from French bank Societe
Generale. TCW management and employees will own the
remaining 40 percent stake in the Los Angeles-based bond fund
manager, which has $135 billion in assets.
DoubleLine, which is also based in Los Angeles, employs more
than 80 people. Stallings and Nazer plan to hire at least five
investment professionals this year, the release said.