Oaktree's DoubleLine investment a home run

|About: Oaktree Capital Group (OAK)|By:, SA News Editor

Howard Marks has a career filled with dingers, but Oaktree Capital's (NYSE:OAK) $20M 2009 investment in Jeff Gundlach's DoubleLine Capital stands out. The stake has paid out $158M to Oaktree since, and now could be worth nearly $1B.

Gundlach started DoubleLine after getting fired by TCW, and his firm's AUM have grown to $85B in the six years since, with the DoubleLine Total Return Bond Fund now at more than $55B after beating 99% of peers over the last five years.

Wells Fargo's Christopher Harris and Robert Ryan figure the DoubleLine stake accounts for about $5.80 of Oaktree's stock value of $44.60 per share - translating into a value of $893M. Morningtree's Stephen Ellis puts a more conservative number on it, but in any case the ROI compares with the best deals Marks has ever pulled off.

Source: Bloomberg

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