Jeffrey Gundlach’s first full year as a mutual fund manager was by far his worst.
It was 1994, and some of the mortgage derivatives Gundlach owned were “slaughtered” when interest rates rose sharply, according to Howard Marks, who worked with the bond manager at TCW Group at the time. The TCW Total Return Bond Fund lost 6.2 percent and the young money manager got a schooling in risk control that has guided the rest of his career, said Marks.
