Gundlach, who had worked at TCW for 25 years, countersued, saying TCW fired him to avoid having to pay management and performance fees for the distressed-asset funds his group managed. Gundlach seeks about $500 million.

TCW today rested its case in the trial, while DoubleLine called its first witness.

TCW hired an investment team from Metropolitan West Asset Management to replace Gundlach in 2009. The TCW Total Return fund advanced 8.9 percent in the past five years, beating 99 percent of peers, Bloomberg data show. The fund lagged behind 75 percent of rivals this year through yesterday.

The firm managed $119.5 billion in assets, including about $31 billion in its mutual funds.

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