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Marks's Oaktree Seen Nearing $1 Billion Gain on Gundlach Bet

  • Original $20 million DoubleLine stake approaches $900 million
  • Firm has collected income of $158 million in past five years
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Separating Superior Investors From Fearful Ones

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Oaktree Capital Group LLC co-founder Howard Marks is known as a shrewd investor. One of his best decisions was spending about $20 million in 2009 for a one-fifth stake in Jeffrey Gundlach’s upstart investment firm.

Gundlach’s DoubleLine Capital has paid out $158 million in income to Oaktree over the last five years, repaying that original investment almost eightfold. What’s more, the stake may now be worth as much as $900 million, according to estimates by analysts who follow Oaktree.