Bill Gross


[via @jennablan, earlier re: horses]

According to the Wall Street Journal Pimco investors have pulled $10 billion since Friday, when it was announced that founder Bill Gross was taking his bonds and leaving. Is this development cause for concern over in Newport Beach? No, says Pimco management, and for three reasons:

1. Most people aren’t going to follow ole whatshisface out to Denver.
2. They’ve got the liquidity to handle however many billions in redemptions the firm ultimately sees.
3. Everyone knew this was going to happen initially, and not because Bill Gross is some great investor but because there are always outflows after any quasi senior employee leaves. Bill Gross isn’t special. Twenty-seven year-old VPs cause outflows.

Read more »

In a move that stunned Wall Street, bond guru Bill Gross is joining Janus Capital Group, effective Sept. 29, the company announced Friday. Gross is leaving as chief investment officer of Pimco, the company he founded, after a remarkable 43-year tenure. Bond guru Bill Gross had met with Jeffrey Gundlach to discuss joining fixed income investment management firm Doubleline.1 Five Pimco executives told parent company Allianz they would leave Pimco if Gross did not. [CNBC, earlier] Read more »

Opening Bell: 09.26.14

Pimco’s Bill Gross to Join Janus Capital to Manage Bond Fund (!!!) (Bloomberg)
Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management Co., will join Janus Capital Group Inc., the company said. Gross will start Sept. 29 and will start managing the Janus Global Unconstrained Bond Fund starting Oct. 6, according to a press release distributed by BusinessWire today.

Bill Gross Leaves Pimco for Janus (WSJ)
“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” Mr. Gross said in a statement released by Janus. “I chose Janus as my next home because of my long standing relationship with and respect for CEO Dick Weil and my desire to get back to spending the bulk of my day managing client assets.”

Bill Gross leaves Pimco for Janus (Reuters)
The announcement comes just days after the Wall Street Journal reported that U.S. securities regulators were investigating Pimco and Gross in connection with an exchange traded fund he also managed at Pimco.

Wall Street scared new Attorney General could be Preet (NYP)
Attorney General Eric Holder is heading to the exit door — and that’s making Wall Street nervous. Executives in the financial services industry see Manhattan US Attorney Preet Bharara as a possible successor — and with his tough-on-corporate-crime history believe a renewed focus Wall Street could be coming to Washington. Holder, after six years atop the Justice Department, is seen as not interested in highlighting white collar crimes. “[Holder] was pretty easy on Wall Street,” Marc LoPresti, a corporate and securities lawyer in New York, told The Post…Bharara, who has held his position since 2009, has successfully prosecuted more than 80 insider-trading cases, including former Galleon Group head Raj Rajaratnam, ex-SAC Capital trader Matthew Martoma, and forced a guilty plea from SAC Capital itself.

U.K. Regulators Hold Talks With Banks on Settling Forex-Rigging Probe (WSJ)
FCA officials, including Chief Executive Martin Wheatley, told the bank officials that the regulator’s goal is to reach a group settlement with the six banks in the next eight weeks, one person said, although that timetable could be delayed. The FCA told the banks that they should each expect to pay the U.K. regulator more than the £160 million ($261 million) that UBS paid in 2012 to settle the U.K.’s probe into interest-rate rigging, the people said.

Woman Drives 12 Blocks With Traffic Officer On Hood Of Car (HP)
A San Francisco woman faces charges of assault with a deadly weapon and misdemeanor hit and run after she allegedly struck a traffic officer who was issuing her a citation, then drove 12 blocks with the man on the hood of her car. Witness Allison Yates said she snapped a photo of the incident as driver Bo Mounsombath, 33, sped by with the attendant clinging onto her car the morning of Sept. 18…”I saw her go by and realized there was a guy on the hood on his back, hanging on kind of spread-eagled. She turned right from that far left lane across all lanes of traffic,” Yates told Hoodline. “She was screaming, he was screaming, it was insane.” Yates’ photo is outrageous, but so are the details in the case. Police caught up with Mounsombath on Market Street, about a mile from where the incident started. According to KTVU, the officer told investigators that he saw Mounsombath take a street sweeping ticket from another car and place it on hers. He walked up to give her a ticket, then Mounsombath stepped on the gas, striking him and a motorcycle before leaving the lot. The officer held on. Mounsombath told KRON that the officer asked her to “do things instead of getting a parking citation which led me to believe he was posing as a meter maid.” The woman told KTVU that the officer had asked for her phone number, felt sexually harassed, and fled out of fear. She said she didn’t mean to hit the officer. Read more »

  • 25 Sep 2014 at 3:08 PM

Bill Gross Not Ashamed Of Driving A Hard Bargain

What’s so wrong about throwing your weight and a few carefully chosen bon mots around for the benefit of your investors, the PIMCO chief undoubtedly asked his also undoubtedly perplexed SEC interviewers. Read more »

Earlier today, it was reported that the Securities and Exchange Commission has been “investigating whether bond fund manager Pimco inflated the returns of its Total Return Exchange-Traded Fund run by founder Bill Gross.” The probe is said to have sped up in recent weeks but has been going on for “at least a year.” Which means that it was happening when Mohamed El-Erian announced he was leaving the firm. Which means that it’s possible not all but some of Bill Gross’s behavior surrounding El-Erian’s departure could be attributed to stress related to the look-see by the SEC, a theory we decided to explore further. Our findings:

* Enforcing total silence on the trading floor with the expectation that Pimco employees will neither speak to, look at, or breathe in his general direction: Gross has long been known to run the trading floor at Pimco with a “Before you even think to open your mouth, shut the fuck up” policy. This was not a new development. Survey says: can’t be blamed on the investigation. Read more »

Remember, back in January, when Pimco co-CEO Mohamed El-Erian announced he was leaving the firm, and founder Bill Gross lost his mind? And did things like call up people at Reuters and demand they report that El-Erian had ghost written a Wall Street Journal article about tension at the firm, as part of a campaign to “undermine” Gross? And “indicated that [he knew this because] he had been monitoring El-Erian’s phone calls”? And when he couldn’t convince anyone to print the story, snapped “You’re on his side. Great, he’s got you, too, wrapped around his charming right finger”? And then went on Bloomberg TV and demanded El-Erian violate his NDA by meeting Gross in a public forum and telling him to his face why he left (even though Gross really kind of already knew)? And was more or less forced to take remedial classes re: how to be okay with people looking him in the eye and speaking to him in general? In an interview earlier this week, El-Erian said he did not see any of this coming, even from Secretariat. Read more »