The TCW Group Inc. (TCW), an international asset management firm based in Los Angeles, has voluntarily withdrawn its UST/TCW Senior Mortgage Securities Fund LP from the U.S. Treasury's legacy-securities Public-Private Investment Program (PPIP). The company says it will conduct an orderly liquidation of the fund and distribute capital to the fund's investors.
The fund, which has approximately $500 million in assets under management, completed its initial closing Sept. 30, 2009.
‘Given that we are at a very early stage of investment in this particular product, and in light of the recent changes in the portfolio management team, we believe this action is appropriate and in line with TCW's commitment to act in the best interests of our clients,’ said Marc I. Stern, TCW's CEO, in a statement.
Last month, the firm's high-profile firing of bond fund manager Jeffrey Gundlach prompted the Treasury to suspend TCW's fund, citing a "key person event." According to media reports, Gundlach's departure rippled through TCW. Gundlach told Reuters in December that close to 40 other TCW employees followed him to his new firm, DoubleLine LLC.