Top bond manager Gundlach ousted from TCW FundWatch – MarketWatch

zyakaira notes: A year end reminder of the fraility and the secrets in the financial markets, such a momentous happening may easily pass us by in the bankruptcies of California and Arizona, The Sale of emerging market stakes by BankAm, Loss of Merrill etc but is equally important. These are fundamental pillars of the fixed income markets that are probably 5-6 times the Equities markets and these are denizens as guilty as Bernie Madoff walking away with a warning

TCW, owned by SocGen of France bought Metropolitan West in a “behind the curtains” deal

Enter Metropolitan West. Buying the crosstown rival gives TCW a solid answer to institutional and retail investors who would otherwise exit along with Gundlach, Jacobson said. Met West’s flagship bond fund, the $7.4 billion Metropolitan West Total Return MWTRX 9.90, -0.02, is highly regarded and rates as one of Morningstar’s favorite bond offerings.

Los Angeles-based TCW, owned by Frances Societe Generale FR:GLE, said Chief Investment Officer Jeffrey Gundlach, one of the nations top bond-fund managers, was “relieved of his duties” as part of management changes accompanying the deal, the purchase price of which was not disclosed.Gundlach was also removed from TCWs board of directors, the firm added.”TCW deeply regrets the need to take this action,” TCW said in a statement.Erin Freeman, a spokeswoman for TCW, declined to comment on why Gundlach was ousted.Behind the scenes move Gundlachs ouster appears to be due to corporate politics rather than problems with the fund managers performance, said Eric Jacobson, director of fixed-income research at investment researcher Morningstar Inc.Jacobson said TCW has been seeking “strategic alternatives,” widely assumed to include a private-equity buyout or selling to another asset manager. Statements that Gundlach had made publicly evidently suggested that he might not be on board with such a move, and the possibility that Gundlach might leave the firm at such a critical juncture spurred TCW to act preemptively, Jacobson added.”They just decided that if they werent really careful he was going to surprise them by leaving,” Jacobson said of TCW. The departure of someone so influential and well-known among bond investors could have been catastrophic for the firm, he added.

via Top bond manager Gundlach ousted from TCW FundWatch – MarketWatch.


About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at:

Posted on December 6, 2009, in Bank Stocks, Financial Markets, GDOW, US and tagged , , , , , . Bookmark the permalink. Leave a comment.

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