Jeffrey Gundlach

Jeffrey Gundlach
Born Jeffrey Edward Gundlach
(1959-10-30) October 30, 1959
Amherst, New York, U.S.
Residence Los Angeles, California
Alma mater Dartmouth College
Yale University
Occupation Bond-fund manager
Employer DoubleLine Capital LP
Net worth $1.66 billion[1]
Spouse(s) Nancy Draper (div.)

Jeffrey Edward Gundlach (born October 30, 1959) is the founder of DoubleLine Capital LP, an investment firm. He was formerly the head of the $9.3 billion TCW Total Return Bond Fund.[2]

Early life

Jeffrey Gundlach was born on October 30, 1959 and is a native of Amherst, New York,[3] where his father was a chemist for a bowling alley.[4] He is a graduate of Dartmouth College where graduated summa cum laude in math and philosophy in 1981,[2] and attended Yale University for a Ph.D. in theoretical mathematics before dropping out.[5]

Career

Gundlach 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.[2] He was fired by TCW in 2009.[6]

Doubline Capital

In 2009, shortly after his firing from TCW, Gundlach founded Doubleline, along with Philip Barach and 14 other members of Gundlach's senior staff from TCW.[7] Barach was Gundlach's co-manager of the $12 Billion TCW Total Return bond fund.[7] In a February 2011 cover story, Barron's called him the "King of Bonds."[8]

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.[9]

On March 10, 2011, Gundlach reportedly liquidated 55 percent of his personal holdings in municipal bonds.[10] However, the decline he predicted did not occur and on the same day as his liquidation, the Bond Buyer Index closed at 106.151904, with this index closing at 119.886063 on December 30, 2011, the last day of trading in 2011, equivalent to an improvement of +12.9%. The index closed at 129.99416 on December 31, 2012.[11]

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.[12]

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.[13] In 2012, he was included in the 50 Most Influential list of Bloomberg Markets Magazine.

Market strategies

Personal life

He was married to Nancy Draper, a bassist in his former band, "The Greens,"[4] who filed for divorce from Gundlach in 2010 after being married for more than 20 years.[15] He currently lives in Los Angeles, California.[16]

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[17] 2010 red Porsche Carrera 4S.[18] 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.[17][18] 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.[19] 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.

Philanthropy

In 2016, Gundlach agreed to donate $42.5 million to Albright–Knox Art Gallery in Buffalo, New York, as part of their capital campaign and expansion project.[20] The gift represents the city’s largest cultural gift from an individual, according to Museum director Janne Sirén. The Gallery will be renamed the Buffalo Albright-Knox-Gundlach Art Museum, or Buffalo AKG Art Museum for short.[21]

References

  1. ↑ "Jeffrey Gundlach". forbes.com. Forbes. Retrieved 26 September 2016.
  2. 1 2 3 "The King of Bonds,", Barron's, February 21, 2011
  3. ↑ Graham, Tim (July 8, 2014). Sources: Jeffrey Gundlach exploring Bills purchase, approached Jim Kelly. The Buffalo News. Retrieved July 11, 2014.
  4. 1 2 Wile, Rob (May 22, 2012). "PRESENTING: The Amazing Life Of Jeff Gundlach, The World's Greatest Bond Investor". Business Insider. Retrieved 26 September 2016.
  5. ↑ Elfenbein, Eddy. "The Mind of Jeffrey Gundlach". Article. Crossing Wall Street. Retrieved 1 December 2013.
  6. ↑ "Bond Star Jeffrey Gundlach to Launch New Fund," Wall Street Journal, July 29, 2011.
  7. 1 2 " "Jeffrey Gundlach, Bond Savant," BusinessWeek, May 10, 2012
  8. ↑ Laing, Jonathan R. (February 21, 2011). "The King of Bonds". Barron's. Retrieved 26 September 2016.
  9. ↑ "Jeffrey Gundlach: Munis Are The New Subprime". CNBC.
  10. ↑ Reuters Editorial (10 March 2011). "Fund manager Gundlach slashes US muni holdings". Reuters.
  11. ↑ "The Bond Buyer". The Bond Buyer Online.
  12. ↑ Reuters Editorial (10 March 2011). "Fund manager Gundlach slashes US muni holdings". Reuters.
  13. ↑ "History of California's General Obligation (GO) Credit Ratings". Public Finance Division.
  14. ↑ Sam Ro (14 January 2014). "Jeffrey Gundlach's 2014 Outlook - Business Insider". Business Insider.
  15. ↑ Kimes, Mina (March 10, 2010). "SPECIAL REPORT:Divorce American style for French bank, bond star". Reuters. Retrieved 26 September 2016.
  16. ↑ Dabkowski, Colin (24 September 2016). "How fate, his Mom and the Garden Walk brought Gundlach's gift to the Albright-Knox". The Buffalo News. Retrieved 26 September 2016.
  17. 1 2 Britt, Russ, "Bond guru Gundlach bets big bucks to get his stolen art back", MarketWatch, September 24, 2012. Retrieved 2012-09-25.
  18. 1 2 "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.
  19. ↑ Bel Bruno, Joe, and Stuart Pfeifer, "Art stolen from Jeffrey Gundlach is recovered; 2 arrested", LA Times, September 27, 2012. Retrieved 2012-10-02.
  20. ↑ Martin, Susan (September 26, 2016). "Garden Walk Buffalo thrilled by billionaire's recognition". The Buffalo News. Retrieved 26 September 2016.
  21. ↑ Pogrebin, Robin (23 September 2016). "Buffalo Museum, Ready to Expand, Raises Money at Breakneck Pace". The New York Times. Retrieved 26 September 2016.

External links

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