Jeffrey Gundlach, explaining why he named his firm DoubleLine Capital LP, compared running a fund to driving on a winding mountain road where a motorist mustn’t cross “the double line into the oncoming lane of risk.”
Tad Rivelle decided in 2008 that prices for some bonds got so low after Bear Stearns Cos. and Lehman Brothers Holdings Inc. collapsed that they made sense only if the U.S. was headed into another Great Depression.
TCW Group Inc.’s wager on risky mortgage bonds, which last year caused the money manager to trail 87 percent of competitors, is paying off now as investors in the securities shrug off Europe’s debt crisis amid signs U.S. housing is stabilizing.
Bill Gross’s $285 billion Pimco Total Return Fund led declines among the most-popular bond mutual funds after the Federal Reserve sparked a global selloff by indicating it may start reducing asset purchases.
Bill Gross’s Pimco Total Return Fund, the world’s biggest mutual fund, is trailing a low-cost Vanguard index fund this year as some of the top bond investors were blindsided by the rally in Treasuries.