DoubleLine Capital has launched a separate division for managing stock portfolios, the company said on Wednesday.
The firm run by star bond investor Jefferey Gundlach, has launched DoubleLine Equity LP for the management of stocks.
In a statement DoubleLine said that its new rock management division will be run by former TCW Group portfolio managers Brendt Stallings and Husam Nazer.
Gundlach, the chief executive of DoubleLine told Reuters in an interview that stock mutual fund strategies were not innovative and had a paucity of ideas.
"We think the equity business is ripe for creative thinking," he said.
The newly started division will start off with one or two mutual funds that would offer investors a strategy focussing on U.S. stocks. Next it would offer a hedge fund that would focus on best ideas in international stock investing, Gundlach said in the interview.
"We're really not prepared to do a lot of individual stock selection outside of the United States," he said.
DoubleLine Capital manages bond assets worth $53 billion.
In September Gundlach had hinted that the firm would be moving into stock management saying that equities were a good hedge against inflation.
On Wednesday he said that some of the stock funds he planned to offer would have a strategy focussed on specific sectors and small and mid-cap stocks, while others would have a broader investment strategy.