The volatile relationship between DoubleLine Capital and The TCW Group doesn’t seem to be showing signs of improvement any time soon.
In an announcement yesterday, the Los Angeles fixed-income firm added a slew of new hires, some of which are former departures from TCW, to help bolster its corporate bond group and treasurer services.
Bonnie Baha, TCW’s former head of the corporate bond group and credit research, and her “highly experienced” government/corporate team, have joined DoubleLine. Baha, a 19-year TCW employee, will be a new portfolio manager and head of global developed credit moving forward, a Jan. 12 press release said.
Additionally, Baha’s corporate credit team is comprised of Ken Austin, a 25-year industry veteran, Paul Kirste, who has 23-years of experience, Anil Lalchand, a 19-year expert and 18-year veteran Monica Erickson, the statement stated.
Separately, Gregory Whiteley, a 26-year veteran and former TCW government bond portfolio manager, linked up with DoubleLine as its new portfolio manager for U.S. government securities, the release said.
"With Bonnie and her corporate team, DoubleLine preserves and continues our core fixed-income deliverable to the client as well as our stand-alone strategies in investment grade corporate credit," Jeffrey Gundlach, DoubleLine CEO, said in the statement. "In addition, Greg Whiteley's experience in the Government sector will be invaluable in the management of our diversified portfolios."
Furthermore, DoubleLine said yesterday in a release that former Peconic Partners Chief Operating and Compliance Officer Joseph Sullivan has been named treasurer of DoubleLine funds trust.
Sullivan’s new duties include serving as the key fund liaison officer to fund administrators, custodians, legal counsel and auditor. He will report to Ronald Redell, firm president, the statement said.
"Joe Sullivan brings to DoubleLine Funds deep experience in both financial and operational administration," Redell said in the release. "[He] also is well known for his leadership in investment administration standards and reform. We are delighted to bring his talents to the service of our investors."
In a Jan. 12 filing with the Securities and Exchange Commission (SEC), DoubleLine announced its funding products for the general public. In total, the firm will offer three funds: the Total Return Bond Fund, the Emerging Markets Income Fund and the Core Fixed-Income Fund.
Gundlach will manage the core fund, and co-manage the total return strategy with Philip Barach, DoubleLine president. Luz Padilla, DoubleLine’s emerging markets debts division investment head, will take on the emerging markets piece.
In December, Gundlach was terminated from his lead TCW investment position due to threats he made to leave the firm and take “key employees with him,” Erin Freeman told Investment Management Weekly previously. Less than two weeks following his dismissal, Gundlach launched his own firm.
On Jan. 7, TCW group filed suit against Gundlach, its former high-yield fixed-income CIO and head portfolio manager, and his firm for breaching their fiduciary duty as well as breach of confidence and civil conspiracy.
In a statement made available the following day, DoubleLine Capital called the allegations “meritless” and said the lawsuit was “a blatant attempt to damage DoubleLine’s business and clients.”
“DoubleLine and Mr. Gundlach are asserting their legal rights in a lawsuit to be filed shortly, which will demonstrate the thoroughly baseless nature of TCW’s claims and seek redress for TCW's deplorable conduct,” the statement said.