• 05 Dec 2012 at 4:26 PM

Jeffrey Gundlach Had A Little Party Last Night

December 7, 1941. November 22, 1963. December 4, 2009. All dates of such historical and cultural significance that if you asked someone where they were that day, they’d surely be able to tell you. Because they weren’t just any old days; they were moments when everything changed. The bombing of Pearl Harbor; the assassination of JFK; and, perhaps most importantly, the firing of Jeffrey Gundlach from the TWC Group, which had taken issue with his decision to start his own firm, and choose to express that anger by first escorting him out of the building and second raiding his offices, where they found an amount of adult films and sexual devices that suggested Gundlach was operating an online wholesale sex shop distributor and keeping the inventory at work. TCW also sued its former employee and at the time, rather than roll over and take it which is something he would never do, Gundlach vowed to fight back and clear up the misconception that TCW was the victim in the situation. On the contrary, JG told people, the real victim was US taxpayers who were “promised” Gundlach’s services and had to settled for a subpar bond manager when his relationship with the firm was terminated. Gundlach ultimately emerged victorious* and perhaps even more satisfying to The Pope was the number of TCW employees and clients who followed him en masse to his new company, the aptly named DoubleLine Capital. We’re not sure how you celebrated last night’s hugely significant anniversary, but we do know how Gundlach did:

According to sources familiar with the bond manager/crime solver/porn collector, Gundlach threw a party for Doubleline employees at a restaurant called Magnolia, which is conveniently located in the lobby of TCW’s building in Los Angeles. And by “conveniently” we mean, as we’ve been told, that it was “deliberately chosen so everybody at TCW would have to walk past them on the way to the garage.” As you may have gleaned, the purpose of the party, we’re also told, was to “send the message: in your face, TCW,” and it sounds as though the message was received! Unfortunately the only other detail we have at the moment is that the party was “long-running,” starting “mid-afternoon” and lasting until “god knows how long.” Our holiday wish, however, would be for some one to confirm that:

– Waitresses wore tee-shirts with $50 billion emblazoned across the chest
– There was a cake depicting Gundlach teabagging TCW execs**
This song was blasted all night long

*Gundlach “was found to have breached his fiduciary duty to TCW and misappropriated trade secrets” BUT a jury “awarded the company no damages on the breach claim” and found Gundlach and DoubleLine “didn’t act willfully and maliciously in misappropriating trade secrets.”

18 comments (hidden to protect delicate sensibilities)
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Comments (18)

  1. Posted by Gloat Quant | December 5, 2012 at 4:40 PM

    Tough but fair

  2. Posted by VonSloneker | December 5, 2012 at 4:55 PM

    The apex of douche-baggery

  3. Posted by Abe_Froman_ | December 5, 2012 at 5:01 PM

    Did people bring gifts for the 3rd anniversary (leather) or for the $50bil (gold dildos)

  4. Posted by HAM05 | December 5, 2012 at 5:26 PM

    never been accused of lasting god-knows how long. is that bad? :(

  5. Posted by Guest | December 5, 2012 at 5:40 PM

    Call me. I broke up with Esric.

    – Raquel Gonzalez

  6. Posted by Guest Buy | December 5, 2012 at 5:40 PM

    Where are the clients' fancy dinners and dildos?

  7. Posted by Guest | December 5, 2012 at 5:40 PM

    And by that I mean I can't read and don't call me.

    – Raquel Gonzalez, Idiot

  8. Posted by im_new_here | December 5, 2012 at 5:42 PM

    Not how I'd have expected him to send the message "in your face."

  9. Posted by gab | December 5, 2012 at 6:02 PM

    Strange dude that Gundlach. Crazy, smart and insecure – not generally a good combination for a money manager. But the guy makes it work…

  10. Posted by Time Cable Warner | December 5, 2012 at 6:14 PM

    Party was fun. Although some of the vibrators started to go off giving away what was in the gift-bags.

  11. Posted by Guest | December 5, 2012 at 10:16 PM

    "Gundlach Style"

  12. Posted by Titleist 3 | December 5, 2012 at 11:07 PM

    As far as I'm concerned he can watch porn and do bong hits all-day every-day as long as he keep generating the returns — fore!

  13. Posted by Guest | December 5, 2012 at 11:18 PM

    I guess if you've ever had a hairy split with a large incompetent financial conglomerate corporate parent, this is a pretty cool story.

    – guy likes to tell himself he shouldn't still be mad about it because he's in a better place

  14. Posted by Kettle | December 6, 2012 at 12:15 AM

    …says the guy who has a "drawer full of madras and seersucker"

  15. Posted by Tanker2Banker | December 6, 2012 at 9:07 AM

    Heh heh..heh heh

    He said "hairy split"


  16. Posted by guest | December 7, 2012 at 5:18 PM

    TCW had an artistic genius toiling for them, and they treated him like garbage. Serves them right to see him succeeding, and so visibly. I'd never use a TCW vehicle or give them a mandate for anything after observing how they treat the value creators. Nice job Stern and Day. How much money did you destroy for your parent co with your inability to get along with portfolio managers?

    — Guy who has money with Doubleline, and delighted with their returns.

  17. Posted by guest of guest | December 12, 2012 at 11:14 AM

    Come again? Gundlach was fired for underperformance by some the largest institutional investors before the subprime crisis and was still promoted to CIO by TCW |===>…. Do you even know what derivatives are in your Doubleline portfolio and do you even know that Gundlach is now underperforming TCW in multiple strategies?

  18. Posted by tucson pub | January 14, 2013 at 5:15 AM

    Through this content I have known about that according to sources familiar with the bond manager/crime solver/porn collector, Gundlach threw a party for Doubleline employees at a restaurant called Magnolia, which is conveniently located in the lobby of TCW’s building in Los Angeles. Actually such type of informative blog I was looking forward to know. A big thank for posting this impression in this website at all.