Jeffrey Gundlach
Jeffrey Gundlach (born October 30, 1959) is the founder of Doubleline Capital, an investment firm. He was formerly the head of the $9.3 billion TCW Total Return Bond Fund, where he finished in the top 2% of all funds invested in intermediate-term bonds for the 10 years that ended prior to his departure.[1] He was fired by TCW in 2009.[2] Barron's in a February 2011 cover story called him the "King of Bonds." He is a native of Amherst, New York[3] and a graduate of Dartmouth College;[1] he went to Yale University for a Ph.D. in theoretical mathematics before dropping out.[4]
Jeffrey Gundlach founded Doubleline along with Philip Barach and 14 other members of Gundlach's senior staff from TCW.[5] He was formerly co-manager of the $12 Billion TCW Total Return bond fund along with Philip Barach.[5]
On March 9, 2011, Gundlach was quoted on CNBC that “Munis Are The New Subprime.” “You’ve got a history of low defaults, which is comforting. But that kind of sounds like what subprime sounded like back in 2006,” Gundlach said. Gundlach pointed out that even if defaults do not ultimately climb as high as critics like Meredith Whitney have warned, muni bonds will likely trade much lower. “Between here and the end game, lies the valley. And the valley is full of fear. I think the muni market is going to go down by at least, on the long end, something like 15 and 20 percent,” he said.[6]
Gundlach reportedly liquidated 55 percent of his personal holdings in municipal bonds on March 10, 2011.[7]
However, the decline he predicted did not occur: on March 10, 2011, the Bond Buyer Index closed at 106.151904, with this index closing at 119.886063 12/30/2011 the last day of 2011 or an improvement of +12.9%. The index closed at 129.99416 on 12/31/2012.[8]
At the time, Gundlach also stated: "Nobody owns California general obligation bonds because they think it's an improving credit story," he said, drawing chuckles from the audience.[9]
However, since March 2011, the ratings of California General Obligation bonds improved from A- to AA- by Standard and Poors and from A1 to Aa3 by Moody's.[10] In 2012 he was included in the 50 Most Influential list of Bloomberg Markets Magazine.
Home burglary and recovery of art
Gundlach's Santa Monica home was burgled in his absence in September 2012 and several pieces of art were taken along with some wine, five designer watches, cash and a prized[11] 2010 red Porsche Carrera 4S.[12] Some days after the theft, Gundlach added to a $200,000 "overall" reward a $1 million reward for the Piet Mondrian painting amongst the missing and a $500,000 reward for the Jasper Johns. The total value of the stolen property was put at $10 million at the time.[11][12] Within weeks, a tip led to the recovery of the art works and arrests of suspects in the theft. The rewards—with the one for the Mondrian being termed a record for a single art work—were being said to have played a role in the recovery though no determination of payment had been made. The Porsche was still missing.[13] Gundlach allegedly solved the crime himself by informing the officers of a stolen painting with only emotional value of his grandmother (with an uncommon name), thieves were likely to Google that name to determine the value.
Market strategies
- 2014 market outlook[14]
- 2013 market outlook
References
- ↑ 1.0 1.1 "The King of Bonds,", Barron's, February 21, 2011
- ↑ "Bond Star Jeffrey Gundlach to Launch New Fund," Wall Street Journal, July 29, 2011.
- ↑ Graham, Tim (July 8, 2014). Sources: Jeffrey Gundlach exploring Bills purchase, approached Jim Kelly. The Buffalo News. Retrieved July 11, 2014.
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- ↑ 5.0 5.1 " "Jeffrey Gundlach, Bond Savant," BusinessWeek, May 10, 2012
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- ↑ 11.0 11.1 Britt, Russ, "Bond guru Gundlach bets big bucks to get his stolen art back", MarketWatch, September 24, 2012. Retrieved 2012-09-25.
- ↑ 12.0 12.1 "Multimillionaire financier victim of $10-million heist", LA Times, n.d. Includes a slide show of nine pieces of stolen art including the Mondrian (#7), the Johns (#6) and a Joseph Cornell (#8). Retrieved 2012-09-25.
- ↑ Bel Bruno, Joe, and Stuart Pfeifer, "Art stolen from Jeffrey Gundlach is recovered; 2 arrested", LA Times, September 27, 2012. Retrieved 2012-10-02.
- ↑ Lua error in package.lua at line 80: module 'strict' not found.
External links
- "Firing the $70 billion man: Full version," Fortune, March 10, 2010
- "The Decline and Fall of the Roman Empire", presentation given by Gundlach on 14 February 2012 (note that the presentation incorrectly dates this presentation as 2011), comparing the United States' debt and military profile to that of the late Roman Empire.
- Levine, Deborah, "Bond guru Gundlach on the U.S., China and Apple", MarketWatch, October 18, 2012.
- "The Mind of Jeffrey Gundlach," Crossing Wall Street, April 22, 2013
