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.
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 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.
December 15, 2009 |
Ousted by Los Angles financial giant TCW Group, star bond fund manager Jeffrey Gundlach on Monday turned to a firm whose executives had their own bitter breakup with TCW nearly 15 years ago. Gundlach said that he was launching an investment firm called DoubleLine with help from Oaktree Capital Management, a major global investor in bonds and private equity. L.A.-based Oaktree was formed by Howard Marks, Bruce Karsh and a handful of other TCW money managers in 1995, in a move that TCW founder Robert Day at the time branded as "disloyal at the very least."
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.
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.