Quick! You barricade the door and he’ll hold down the investors that apparently can’t flee Pimco fast enough. Read more »
The New York offices of Pimco, the massive asset manager run by Bill Gross, are being fumigated this week because of a bed bug infestation. “Our New York office is addressing an isolated issue with insects, and as a precautionary measure the firm is fumigating certain areas of the office space,” a spokesman said on Wednesday. “During this period, our employees are working remotely, and we expect to resume full on-premises staffing over the coming days.” Pimco’s New York offices, located in the Paramount Plaza on 1633 Broadway, are one of a dozen global locations. Pimco, a unit of Allianz SE, has its headquarters in Newport Beach, Calif. “This is an issue that is far from uncommon in New York City,” the spokesman said, regarding New York City’s battle with the epidemic of tiny blood-sucking insects. [Reuters, earlier]
Clients continue to leave Pimco and, in particular, Mr. Gross’s fund. His Total Return fund, the world’s largest bond fund, saw $4.5 billion of net investor outflows in June—its 14th consecutive month of defections—despite outpacing two-thirds of it rivals in the second quarter, according to fund-research firm Morningstar Inc. Over that period, investors pulled $64 billion from the now-$225 billion fund, an amount that dwarfs the total size of most mutual funds. The withdrawals came as investors, industrywide, added money to bond funds. Pimco has suffered net outflows across all its mutual funds for the past 13 months. [...] “My attitude is, ‘We’ll show ya,’ ” Mr. Gross said during the interview at Pimco’s headquarters, while wearing an unknotted blue tie he says was a present from Mr. El-Erian. “I’m not leaving until we show everybody that this new structure is better than the old structure.” “Don’t count me out,” he added. [WSJ, earlier]
For the first 43 years of his career, Pimco founder Bill Gross thought it was acceptable to issue demerits to people who looked him in the eye or spoke to him. So in February, when he was more or less forced to figure out how, at the age of 70, to act like a pleasant person, or face even more high level departures by people who suffer from debilitating conditions that cause them to make eye contact, it was obvious he had a rough road ahead of him.
Not wanting to read more articles about how he made someone write a $10,000 check for sitting, or slashed another’s bonus for failing to include a ‘p.37′ on a powerpoint presentation, Gross worked hard at the task at hand, and meaningful progress was made. Most notably, investment committee meetings “now take place in a room with a round table, rather than a rectangular one as in the past,” which according to Gross, has made people more comfortable and willing to speak (period, and also to express a difference of opinion with the boss).
But Rome wasn’t built in a day, and if you thought there wouldn’t be setbacks on the road from being a guy who “humiliate[s] people for stumbles” and instills such fear in them that they “recall nights [they were] so scared of being fired for mistakes [they] could not sleep” to a guy people want to be around, you thought wrong. Read more »
All We Need is One Financial Services Employee With A Killer Duck Confit Recipe And We’ve Got Ourselves A TrendBy Bess Levin
An ex-Pimco guy is doing croque monsieurs. A BNP risk manager is about to leave for crepes. What will you contribute? If Boeuf Bourguignon is out of your comfort zone, tear up some pieces of a baguette and smear some chocolate on them and call it a day. Read more »
Bill Gross was at the Morningstar annual conference in Chicago today, saying things. Here are some of the things he said: Read more »