Jeffrey Gundlach, co-founder of the super-hot bond mutual fund company Doubleline Capital, has had an exciting few days:
September 14th – GETS ROBBED
Jeffrey Gundlach returns home from a business trip to find his house was burglarized. Several famous paintings were stolen with a market value of over $20 Million.
September 20th – OFFERS REWARD
Gundlach offers a reward of $200,000 for any tip leading to the recovery of his art.
September 24th – INCREASES REWARD
Gundlach holds a press conference to announce an additional $1.5 million reward for the return of his favorite paintings and art objects undamaged.
September 26th – COPS RECOVER ART
Police receive a tip that the stolen art is located at an auto-sound shop. Raid is successful with all paintings recovered.
October 2nd – GUNDLACH’S FUND RECEIVES 5 STAR RATING
Learn Bonds awards Gundlach’s DoubleLine Total Return Bond Fund a five star rating. The fund has yet to be rated by Morningstar or Lipper, despite managing ten of billions of dollars.
more detail’s about the robbery, recovery and 5 star rating . . .
The name of Gundlach’s firm is a tribute to the style of his favorite artist Piet Mondrian. Below is a picture of the work of Mondrian that was stolen.
Gundlach offered a million dollar reward for the return of this painting undamaged. The key word is “undamaged”. Often times, thieves that successfully rob well-known paintings end up destroying them. Why? Many wealthy buyers don’t want to take the risk of buying a painting in which there is an active large scale investigation, or can be easily identified as stolen when they show their collection. As a result, the thieves often destroy the evidence of the crime when they cannot sell the art to collectors.
Many people would have let the police handle the matter of catching the criminals. Many people would also be satisfied with receiving the money from insurers for their stolen artwork. Not Jeffrey Gundlach. He publicized the theft. Every major news organization ran photos of the stolen art work, making the paintings impossible to sell. Then he offered a reward “$200,000 – No questions asked for the return of the artwork”, trying to get the thieves to give back the art or their potential buyers to rat them out. When that did not work, he raised the reward. In short, Gundlach took control of the situation and achieved the outcome he desired.
The rating service of Learn Bonds, LB Fund Ratings, has only granted a five star rating to 5 mutual funds and ETFs. However, the DoubleLine Total Return Fund is the only five star fund in both the core bond fund and short-duration fund categories. Short duration funds have a major advantage over other bond funds, because they are much less heavily impacted by rising interest rates. Where a 1% rise in interest rates would decrease the value of The Pimco Total Return Fund by 5%, the DoubleLine Total Return Fund would lose only 1%..
Despite having much less interest rate risk. the fund has turned in outstanding returns of 8.27% this year.
No. In fact, to date Morningstar and Lipper have yet to rate the fund. This is probably because the fund has only been around since April 2010. However, Gundlach has a long-term track record as a very successful mutual fund manager prior to starting the fund.