Jeffrey Gundlach’s Blood Feud With Morningstar: The Inside Story

Is the genius of DoubleLine founder Jeffrey Gundlach on display resulting from his recent disagreement of opinion with Morningstar? And what exactly is the special sauce behind DoubleLine’s rather dramatic out-performance relative to industry benchmarks?

As DoubleLine today announces total firm net inflows of $688.7 million in July, with the flagship DoubleLine Total Return Bond Fund (DBTLX) snatching as much as $390.4 million in new assets alone, the firm founded in the wake of an employee dispute has garnered strong net asset inflows since the issue with Morningstar first surfaced -- a time period correlated with the exit of Bill Gross from PIMCO, which was also a factor.

The often subtle and sometimes public disagreement between Gundlach and Morningstar – Barron’s at...