Gundlach: Shaky Mortgages to Solid Returns

(TheStreet) -- As manager of TCW Total Return Bond (TGLMX), Jeffrey Gundlach compiled an eye-popping record. During the 15 years ending in 2009, the fund returned 8% annually, topping 99% of its intermediate-term competitors, according to Morningstar. Gundlach slightly outpaced PIMCO Total Return (

), the giant fund run by star manager Bill Gross. What made TCW's record particularly noteworthy was that Gundlach focused solely on mortgage-backed securities. Most competitors owned a wider range of holdings, including corporate and government bonds, as well as mortgage securities. Gundlach seemed to play with one hand tied behind his back. The handicap became especially important as the credit crisis unfolded and many mortgage securities collapsed. But Gundlach sailed through the turmoil, delivering solid returns. The strong performance came to an end in December, when Gundlach quarreled with his bosses. Charges and countercharges flew, and the portfolio manager was forced to look for new work. To read the rest, head over to