DoubleLine Capital
{{short description|American investment firm}}
{{Use dmy dates|date=December 2023}}
{{Infobox company
| name = DoubleLine Capital LP
| logo = DoubleLine Capital.png
| image =
| image_caption =
| type = Private
| industry = Investment Management
| predecessor =
| foundation = {{start date and age|2009|12}}
| founder = Jeffrey Gundlach
| key_people = Jeffrey Gundlach (CEO and CIO)
| hq_location = Tampa, Florida, U.S.
| products = Mutual funds
Closed-end funds
Exchange-traded funds
UCITS
| aum = US$91.2 billion (March 2023)
| assets =
| owners = Oaktree Capital Management (20%)
| num_employees = 284 (March 2023)
| homepage = {{URL|doubleline.com}}
| footnotes ={{cite web |title=Form ADV |url=https://reports.adviserinfo.sec.gov/reports/ADV/152606/PDF/152606.pdf |website=SEC}}
}}
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.
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.{{Cite web |title=From zero to $150 billion: The inside story of Jeffrey Gundlach's decade at DoubleLine |url=https://finance.yahoo.com/news/inside-story-of-doubleline-capital-first-decade-151256869.html |access-date=5 April 2023 |website=Yahoo Finance |language=en-US}}{{Cite news |date=11 May 2012 |title=Jeffrey Gundlach, Bond Savant |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2012-05-10/jeffrey-gundlach-bond-savant |access-date=5 April 2023}}{{Cite news |date=19 August 2011 |title=TCW's Stern Says He Fired Gundlach Because Firm Was 'Threatened' |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2011-08-18/tcw-chief-stern-says-he-fired-gundlach-because-company-was-threatened- |access-date=5 April 2023}}{{Cite news |date=30 December 2011 |title=TCW, Gundlach Settle Suit Over Firing, Trade Secret Theft Claims |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2011-12-30/tcw-gundlach-settle-suit-over-firing-trade-secrets-as-terms-undisclosed |access-date=5 April 2023}}{{Cite web |last=Laing |first=Jonathan R. |title=The King of Bonds |url=https://www.wsj.com/articles/SB50001424052970204442204576144662301971254 |access-date=5 April 2023 |website=www.wsj.com |language=en}}
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.{{Cite web |last=Bryan |first=Bob |title=Howard Marks made $900 million from his investment in 'Bond King' Jeff Gundlach |url=https://www.businessinsider.com/marks-made-900-million-billion-investing-in-gundlach-2016-2 |access-date=5 April 2023 |website=Business Insider |language=en-US}}
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.
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.
In July 2011, DoubleLine launched its first closed-end fund, the DoubleLine Opportunistic Credit Fund which was managed by Gundlach himself.{{Cite web |last=Ovide |first=Shira |title=Bond Star Jeffrey Gundlach to Launch New Fund |url=https://www.wsj.com/articles/BL-DLB-34178 |access-date=5 April 2023 |website=WSJ |language=en-US}}
By November 2012, DoubleLine was managing $50 billion.{{Cite news |date=14 November 2012 |title=High-profile bond firm DoubleLine hits $50 billion in assets |language=en |work=Reuters |url=https://www.reuters.com/article/funds-investing-doubleline-idINL1E8ME6ZP20121114 |access-date=5 April 2023}}
In January 2013, DoubleLine established a new division that would manage equity portfolios called DoubleLine Equity LP.{{Cite news |date=2 January 2013 |title=DoubleLine launches stock management division |language=en |work=Reuters |url=https://www.reuters.com/article/us-funds-investing-doubleline-idUSBRE9010EG20130102 |access-date=5 April 2023}}
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.{{Cite web |last=Grind |first=Gregory Zuckerman and Kirsten |title=Investors Pull Back From Gundlach's Biggest Fund at DoubleLine |url=https://www.wsj.com/articles/investors-pull-back-from-gundlachs-biggest-fund-at-doubleline-1503230402 |access-date=5 April 2023 |website=WSJ |language=en-US}}
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.{{Cite web |last=Childs |first=Mary |title=Jeffrey Gundlach's investment firm DoubleLine suffers spate of departures |url=https://www.fnlondon.com/articles/jeffrey-gundlachs-hedge-fund-doubleline-suffers-spate-of-departures-20190722 |access-date=5 April 2023 |website=www.fnlondon.com |language=en-GB}}{{Cite web |last=Childs |first=Mary |title=Jeffrey Gundlach’s DoubleLine Sees Spate of Departures |url=https://www.barrons.com/articles/jeffrey-gundlachs-doubleline-sees-spate-of-departures-51563793203 |access-date=6 April 2023 |website=www.barrons.com |language=en-US}}
In February 2022, DoubleLine moved its headquarters from Los Angeles to Tampa, Florida due to its tax laws.{{Cite news |date=24 February 2022 |title=Gundlach Moves DoubleLine Unit to Tax-Free Florida |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-02-24/gundlach-moves-134-billion-doubleline-unit-to-tax-free-florida |access-date=5 April 2023}}
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.{{Cite web |date=8 April 2022 |title=DoubleLine debuts two actively managed ETFs |url=https://www.etfstrategy.com/doubleline-debuts-two-actively-managed-etfs-10339/ |access-date=5 April 2023 |website=ETF Strategy |language=en-US}}
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.{{Cite news |date=4 April 2023 |title=Gundlach’s DoubleLine Launches Real Estate and Mortgage ETFs at Tricky Time |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-04-04/doubleline-launches-real-estate-and-mortgage-etfs-at-tricky-time |access-date=6 April 2023}}{{cite web|url=https://www.bloomberg.com/news/articles/2023-04-11/doubleline-says-real-estate-drama-is-perfect-time-for-new-etf#xj4y7vzkg|title=DoubleLine Says 'Perfect Time' for New Real Estate ETF Despite Property Worries|website=Bloomberg|date=11 April 2023|author=Katherine Greifeld|access-date=19 May 2023}}
Investment funds
References
{{reflist}}
External links
- {{official website|https://www.doubleline.com}}
{{authority control}}
Category:2009 establishments in California
Category:Companies based in Tampa, Florida
Category:Financial services companies established in 2009
Category:Investment management companies of the United States