The founder of Doubleline Capital, Jeffrey Gundlach in his Thursday interview with “The Street” said that his investment firm actually owns Apple Inc. (NASDAQ:AAPL) in its investment portfolio.

Jeff Gundlach

In an interview by Chris Ciaccia of The Street, the founder of Doubleline Capital admitted he is now long on Apple and said “Apple Inc. (NASDAQ:AAPL) is sorta cheap.” Bond God Jeffrey Gundlach famously shorted Apple’s stock not long ago.

Gundlach was earlier considered one of the high-profile Apple Inc. (NASDAQ:AAPL) bears. Earlier he had remarked, “You can’t just keep rolling out iPhone’s and iPad’s and think that everybody needs a new one. There are plenty of competitors like Samsung and other legitimate competitors like them.” He maintained a price target for Apple at $425 when it was trading around the $560 level in November.

Jeffrey Gundlach, who runs Doubleline Capital LP, the $33 billion bond firm, indicated during his Thursday interview that his firm bought Apple at $405 the first time and now the average cost is below $425, the price that he predicted earlier.

However, Gundlach now feels Apple Inc. (NASDAQ:AAPL) is an interesting play. He feels that if one were to exclude Apple’s substantial cash hoard, the shares now trade roughly seven times its earnings and the pricing reflects the scenario as if no new products would emerge from Apple Inc. (NASDAQ:AAPL).

The founder of Doubleline remarked: “I sorta like Apple.”

In his interview last week with Reuters TV, the famed bond investor indicated that he likes Apple these days just as a trade as it has formed a base. He felt at P/E of 7, Apple Inc. (NASDAQ:AAPL) is priced pretty low. He said despite facing challenges with product innovation, with its mature business he would rather own Apple stock than Apple bonds.

Jeffrey Gundlach compared Apple with Microsoft:

However, in his interview last week he indicated that from a long term perspective, Apple may not excite him.  He felt Apple stock may stay around $500 and then it might go down to $300 and might stay there for a longer time.  Jeffrey Gundlach compared Apple with Microsoft by indicating Apple Inc. (NASDAQ:AAPL) is kind of a new Microsoft Corporation (NASDAQ:MSFT) where the company is very big with lots of cash flow but not certain about its future scenario.

See Also: Jeff Gundlach Nails Apple Call, Says Stock Could Hit $300 [VIDEO]

Market however expects Apple Inc. (NASDAQ:AAPL) to come out with a revamped fingerprint technology with the new iPhone, iOS 7.

Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook during the earnings call, declared that Apple would come out with new products for a scheduled launch during 2013 and 2014.