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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: gronieel2 who wrote (6340)	9/3/2011 7:54:34 PM
From: joefromspringfield	1 Recommendation Read Replies (1) \| Respond to of 10065

Gundlach and his former employer, Trust Company of the West, are locked in a trial that has given a rare glimpse into the inner workings of investment firms and the big personalities who run them. TCW fired Gundlach in December 2009 and sued him a month later, accusing him of stealing trade secrets, plotting to form a new company using TCW proprietary information and gutting the firm of its entire mortgage-backed securities team. Gundlach fired back with a counter-lawsuit, alleging his former employer owed him hundreds of millions of dollars in compensation. In the weeks following his termination, Gundlach went on to form DoubleLine Capital, along with three of his co-defendants in the case. Roughly 45 TCW employees, largely from the mortgage-backed securities group, followed. After meeting Ripoll, Gundlach testified that he initiated "defensive" activities in case he was fired, which were executed by members of his inner circle. These included looking for commercial real estate; creating a shell company; copying client lists, client holdings, and portfolio trade orders, and consulting with Goldman Sachs about how to manage a potential exit from the company. Gundlach, who calls himself "The Pope" and "The Godfather," was on the stand on Tuesday for his third day of testimony. Despite his defensive maneuvers, he also told jurors he repeatedly instructed DoubleLine employees not to use TCW data and to turn in devices that contained such data. Gundlach thought it was "quite likely" that DoubleLine was going to fail six months after its formation, he said in court. "We were losing tons of money" in June 2010, he told jurors on Tuesday. "It was quite likely the business would fail." But in the following months, the firm attracted more clients and launched more funds and by the end of the year closed out with $6 billion in assets under management and $10 million in revenue, he added.