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Gundlach’s DoubleLine Total Return Bond Fund Exceeds $10 Billion in AUM

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The DoubleLine Total Return Bond Fund has reached $10 billion in assets under management, just 16 months after the fund’s launch in April 2010, DoubleLine Capital announced Wednesday.

A $10,000 investment in the Total Return Bond Fund (DBLTX) has grown 15% over the last 16 months to $11,500, thanks to superstar fund manager Jeffrey Gundlach’s ability to pick securities.

DBLTX returned 11.6% over the last 12 months. That compares to the 3.6% return in the PIMCO Total Return Fund (PTTRX) managed by Bill Gross, who cut back his exposure to U.S. Treasuries in March in the face of record budget deficit projections.

Morningstar’s Intermediate Term Bond Fund category ranks DBLTX at No. 1 out of 1,161 funds, based on total returns, for the one-year period ending July 29. DLTNX is ranked No. 2. Both share classes in the fund ranked in the top 1% of all funds ranked for the same period.

DoubleLine CEO Jeffrey Gundlach Gundlach (left), chief executive of DoubleLine, and Philip Barach, its president, co-manage the Total Return Bond Fund, according to the company’s website. The firm is majority employee-owned, with Gundlach and Barach holding a combined controlling interest.

“Markets have been difficult and volatile since the founding of DoubleLine,” Gundlach said in a statement. “We have worked very hard to meet our clients’ needs, striving for capital preservation and return.  And we will continue to do so.”

Since leaving under a cloud from his former post as a fund manager for the Trust Company of the West, Gundlach has earned a reputation for being an outspoken, controversial and successful portfolio manager whose thoughts move markets.

Earlier this month, Gundlach warned that the European banking crisis is “just like 2008,” and he counseled investors to “stay conservative.”

Registered investment company DoubleLine Funds Trust was formed as a Delaware statutory trust on Jan. 11, 2010. Assets under management at Los Angeles-based DoubleLine now total $15 billion across a range of mortgage-backed securities, fixed income and multi-asset strategies.   DoubleLine manages mutual funds, separately managed accounts and hedge funds.