Reason Number One the abrupt departure of Pimco Chief Executive Mohamed El-Erian will not only not hurt the firm but will in fact help it: the old structure of having one chief investment officer sucked. The new structure of having six deputy chief investment officers rocks.

Reason Number Two Pimco 2.0 will make Pimco 1.0 look like a “Before” picture: seating arrangements.

Reason Number Three El-Erian did everyone a favor by leaving: because Bill Gross has an exclamation point that says so.

Pimco’s Bill Gross, manager of the world’s largest bond fund, on Tuesday sought to reassure the firm’s clients about the new leadership structure he has put in place since his heir apparent stunned the investment community last month by announcing his departure. Gross called the collection of six new deputy chief investment officers a “significant improvement” from Pimco’s previous structure, which concentrated nearly all investment strategy decision making onto the shoulders of Gross and Pimco Chief Executive Mohamed El-Erian…In a letter posted on Pimco’s website, Gross said: “We will take turns chairing our daily meetings, which will allow for greater focus on certain sectors and regions. I also find that I often prefer to sit at the side of the table rather than at the head of it. I can contribute more effectively that way, learn more by listening, and it gives others the opportunity to lead.” …

“We believe this new format, and the idea sharing it will facilitate, will be more responsive to market developments,” Gross wrote. “It will be great!”

That’s right! You listen to the exclamation point!

Pimco’s Gross tries again to soothe clients [Reuters]

Earlier: Bill Gross: Pimco 10 Times The Fund It Was With Ole Whatshisface

Comments (6)

  1. Posted by Brainteaser Question | February 18, 2014 at 6:38 PM

    Wouldn't getting a round table have solved that problem?

  2. Posted by Guest | February 18, 2014 at 10:31 PM

    We all make mistakes. I thought the Duesenberg would make a comeback. After all, when something was good we called it a "duesey." I thought the Studebaker was fast and would be a winner. The Edsel caught my eye. My latest favorite was the Pontiac V6 with a supercharger. You know the rest of these stories. So McD, a mistake was made. If your lucky stars are lined up, hire her back. If she lived in my city I would see that she got an excellent job.

  3. Posted by b. dee | February 18, 2014 at 11:55 PM

    Too many managers in the office will spoil the portfolio!

    - Facebook Chef

  4. Posted by Guest | February 19, 2014 at 4:36 AM

    Significant improvement? The person operating in the deputy CIO role only has 1/6th the power in his/her position and 1/6th the power to challenge BG. It's funny that he tries to claim he's a sideboard when it's obvious where the concentration of power lies. No wonder clients are running scared.

  5. Posted by Guest | February 19, 2014 at 4:45 AM

    It's called the "Let's hold hands and sing 'Kumbaya' strategy."

  6. Posted by UFO | February 19, 2014 at 2:00 PM

    BG controlling the process of 'not being in control'. How avant garde. I suppose that he's going to run an election among the six princelings to name him CIO as well.

    If I didn't know better, I'd swear Putin was running PIMCO