PIMCO

  • 30 Sep 2014 at 2:39 PM

Morningstar Still Has 99.579% Confidence In Pimco

As you may have heard, Pimco co-founder Bill Gross announced last Friday that he was leaving the firm he started in 1971 for Janus Capital Group, before parent group Allianz could fire him. Since then, analysts, commentators, investors, and feral cats hoping to take Bob Gross‘s place have weighed in on who will ultimately emerge stronger from this breakup. The people who pulled $10 billion from Pimco immediately after hearing that Gross was out clearly believe that that place is nothing without him. Pimco management has taken the other side of the argument. Ron Insana at CNBC just wants everyone to know that “Bill Gross is NOT crazy.” And what does the ratings branch of Morningstar think? Apparently that Pimco is still a world class athlete of a fund but that it might have to stand on the short box. Read more »


[via @jennablan, earlier re: horses]

Charlie Gasparino, live from the DJ booth: Read more »


[via @cnbcnow]

  • 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 »