MutualFundWire.com: Will Gundlach Ease Up On DoubleLine's Throttle?
MutualFundWire.com
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Wednesday, August 9, 2017

Will Gundlach Ease Up On DoubleLine's Throttle?


Jeffrey Gundlach is thinking about slowing DoubleLine's [profile] growth, and that time may not be too far off.

"I've actually been turning money away in our institutional business," Gundlach tells Bloomberg's Erik Schatzker. "I don't want to manage $500 billion. I don't really want to manage $200 billion."

"To get to $300 billion, I think you need a thousand people," Gundlach adds. "You need offices in Beijing and Mumbai and London, because you really have to go big on sovereign wealth funds and a lot of wholesalers in the retail industry. And it just becomes a very big company, and I don't want that."

In the less than eight years since Gundlach created DoubleLine, the Los Angeles-based asset manager has grown to about $110 billion in AUM, more than 200 employees, and just two locations (the Los Angeles HQ and an office in Tokyo). Gundlach says he might shut off DoubleLine's marketing at $150 billion in AUM (a 36-percent AUM increase from today), Bloomberg writes, and he doesn't want his $54-billion flagship fund (the DoubleLine Total Return Bond Fund) to get to $100 billion. As far back as 2013 Gundlach was publicly pondering soft-closing that flagship fund.

Meanwhile, Gundlach continues to focus on diversifying DoubleLine's business across different strategies.

"I don't want one $150 billion fund, I want 10 $15 billion funds. A diversified business," Gundlach tells the publication. "We lose business because our fees are too high and I say, 'Fine, that's a way of regulating growth.'"


Printed from: MFWire.com/story.asp?s=56817

Copyright 2017, InvestmentWires, Inc.
All Rights Reserved
Back to Top