DoubleLine Capital retains an Average Parent rating, though its durable investment culture and renewed focus on growth deserve mention.
Since its founding in 2009, DoubleLine has developed into a strong fixed-income firm. Its fixed-income investment team is experienced and stable, with many senior managers having worked together for well over a decade. Employee ownership in the firm, strong manager retention, and meaningful personal investment in the firm’s strategies help align the team with clients.
Its reputation remains closely linked to founder Jeffrey Gundlach, though DoubleLine deserves credit for the steps it has taken to prepare for his eventual retirement, which the firm says is still some way off. The next generation of portfolio managers, such as Ken Shinoda and Andrew Hsu on flagship DoubleLine Total Return (along with Gundlach), have long played active roles on the strategies and with clients, and there are established firm leaders in deputy CIO Jeffery Sherman and president Ron Redell. The firm has also been steadily expanding the number of employee owners, diluting Gundlach’s still-significant stake in the process. Gundlach remains involved in asset allocation and firm leadership, and founder-led firms are often still exposed to risks during leadership transitions, but the firm is taking the right steps regarding succession planning to help mitigate disruption.
DoubleLine’s assets under management have declined from their 2019 peak and have been broadly flat in recent years, though the firm still manages USD 95 billion. This lack of growth has prompted the firm to strengthen efforts to improve distribution and client engagement, efforts that are still developing. Moreover, some of DoubleLine’s newer and more specialized products, like DoubleLine Commodity Strategy ETF and DoubleLine Fortune 500 Equal Weight ETF, have attracted limited investor interest.
DoubleLine continues to emphasize investment quality and risk awareness, while mostly keeping new offerings within its fixed-income expertise. As the firm continues to evolve, its stable investment organization and renewed focus on client engagement suggest positive momentum.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, DoubleLine (Branding Name ID: BN00000C2G), is covered by Morningstar Manager Research.
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