February 10, 2010 |
Star L.A. bond fund manager Jeffrey Gundlach filed a countersuit Wednesday against his former employer, TCW Group Inc., alleging the firm ousted him to avoid having to share as much as $1.25 billion in fees from assets Gundlach oversaw. The suit is the latest chapter in the bitter divorce between TCW, one of L.A.'s biggest money managers, and Gundlach, who was a 24-year veteran of the firm and its chief investment officer when he was fired Dec. 4. TCW, which manages more than $100 billion in assets, said it terminated Gundlach because he had threatened to leave and take his staff with him. Within days of his firing Gundlach in fact set up a new firm, DoubleLine Capital.
January 8, 2010 |
The bitter split between Los Angeles money management giant TCW Group and former executive Jeffrey Gundlach turned nastier Thursday, as TCW sued Gundlach, alleging that he stole confidential information and used it to launch a rival firm. Gundlach, ousted as investment chief of $110-billion-asset TCW on Dec. 4, schemed for months with top lieutenants to exit the firm with vast amounts of proprietary data, the lawsuit asserts. TCW also sought to portray the 50-year-old Gundlach as unfit to remain a company officer.
July 29, 2011 |
Now on trial in an L.A. courtroom: a classic case of Wall Street greed. That's the picture lawyers for both sides painted for jurors in the first round of the high-stakes court battle between L.A. money manager TCW Group and its former investment chief. Jeffrey Gundlach, the star bond fund manager who was fired by TCW in December 2009, was ousted because he was plotting to destroy the company by setting up a rival firm with secrets stolen from TCW, TCW's lawyers said in their opening statement Thursday.
January 13, 2010 |
DoubleLine Capital, formed by star bond fund manager Jeffrey Gundlach after he was fired by L.A. money management firm TCW Group last month, on Tuesday registered to launch its first three mutual funds for individual investors. Gundlach, who is in a vicious legal battle with TCW, hopes to lure investors from the TCW funds he had managed for the last decade, including TCW's retail flagship, Total Return Bond fund. In a filing with the Securities and Exchange Commission, DoubleLine applied to launch its own Total Return Bond fund, which like TCW Total Return Bond would invest primarily in mortgage-backed bonds.
December 12, 2009 |
A power struggle at one of L.A.'s biggest investment firms has many of the ingredients of a Shakespearean tragedy: frustrated ambition, a hero's fall from grace, betrayal and revenge. It also has left billions of dollars of investors' hard-earned money stuck uncomfortably in the middle. One week ago, TCW Group unexpectedly fired its veteran investment chief and star bond fund manager, Jeffrey Gundlach, asserting that he had threatened to quit the firm and leave it in the lurch.
September 1, 2011 |
TCW Group Inc. Chairman Robert Day testified that the firm's star bond fund manager had become "unstable" in the months leading up to the decision to fire him, but that the company still had hoped to strike a deal to keep him. Jurors in the bitter court battle between TCW and its former chief investment officer, Jeffrey Gundlach, on Wednesday also heard the L.A. money management firm's former president call Gundlach "a disease" on the company and...
June 26, 2010 |
DoubleLine Capital, the L.A. money management firm founded by ex-TCW Group executive Jeffrey Gundlach in December, said Friday that its flagship bond mutual fund had accumulated $1 billion in assets in less than three months. The milestone may help Gundlach as he seeks to attract investors who had invested with him at TCW before the firm ousted him in a bitter breakup Dec. 4. The DoubleLine Total Return Bond fund has been the fastest-growing new mutual fund of 2010, according to Morningstar Inc. The fund, which invests mostly in mortgage-backed securities, was launched April 6 and is up 7.4% since then, according to Bloomberg News data.
December 9, 2009 |
The bitter split between Los Angeles money manager TCW Group and its chief investment officer, Jeffrey Gundlach, has caused the U.S. Treasury to suspend a $1-billion fund TCW recently raised to buy toxic assets from banks. Gundlach, who was fired by TCW on Friday, was to have led the team managing the fund under the Treasury's Public-Private Investment Program. With Gundlach's departure, the government has the right to put the fund on hold while it requests information about who at TCW now will be in charge of the money raised.
February 25, 2010 |
TCW Group Inc.'s ouster of its star bond fund manager in December cost the Los Angeles investment firm more than one-fifth of the assets it managed before the firing, the company disclosed Wednesday. Institutional and individual investors pulled a total of about $25 billion from TCW after the company terminated Jeffrey Gundlach as chief investment officer Dec. 4, according to TCW data. The company managed $115 billion as of Jan. 31, up from $110 billion Dec. 4. But about $31 billion of the $115 billion was brought in by Metropolitan West Asset Management, which TCW agreed to buy to replace Gundlach and the TCW staffers whom the firm correctly expected to leave with him. Excluding the Metropolitan West money, TCW's assets declined to about $84 billion on Jan. 31. Any drop in assets means a money manager has less income than it would otherwise, because management fees are charged as a percentage of assets.
August 18, 2011 |
Attorneys for TCW Group Inc. briefly took their legal battle with former executive Jeffrey Gundlach onto new turf, suggesting to jurors that the star bond fund manager incurred excessive risk to produce stellar portfolio returns. The inference by TCW's lead attorney, John Quinn, drew a sharp response from Gundlach in court on Wednesday. "With respect, you don't know what you're talking about," he told Quinn. Gundlach, 51, was fired by TCW in December 2009 after 24 years at the money management giant.