Janus didn’t respond messages seeking comment.
TCW laid the groundwork for its rebound the same day it fired Gundlach, when it announced the purchase of Metropolitan West Asset Management and named that firm’s investment chief Tad Rivelle to replace Gundlach. The acquisition added $30 billion in assets and a bond team with a record on which it could build.
The MetWest Total Return Bond Fund was started in 1997 by Rivelle, Laird Landmann and Stephen Kane, all of whom previously worked at Pimco. During the financial crisis of 2008, the team bought mortgages without the backing of the federal government, which had been beaten down in price when the housing market collapsed. The securities rebounded along with housing, helping MetWest outperform.
Over the past five years, the fund beat 96 percent of rivals, data compiled by Bloomberg show. Over 15 years it returned 6.6 percent annually, beating the 6.4 percent for Pimco Total Return, according to Morningstar Inc.
The firm now manages about $180 billion, about twice as much as it oversaw shortly after Gundlach’s departure.
When investors were searching for a Pimco substitute in 2014, MetWest was a logical candidate, said Bryan Whalen, who has worked on the flagship fund since 2004.
“We were one of the names people considered,” said Whalen, “because we had a track record and consistent philosophy. People know who we are and how we will be investing at any point in the cycle.”