proclamations

  • 15 Jul 2014 at 1:15 PM

Bill Gross Will Show You. He’ll Show All Of You!

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]

Time was, Bank of America loved buying companies. Bonus points if there was a not-so-subtle suggestion by the target’s CEO that BofA would one day be very sorry for doing so, or that they would’ve been better off picking up an asbestos manufacturer, or that they were looking at roughly $40 billion (and counting) in legal fees associated with fuck-ups that were to become Bank of America’s problem, or that they would have night terrors for the rest of their lives about signing those papers. As it’s been a while since BofA went shopping, some in the financial services industry have been wondering if we can expect any announcements re: big deals anytime soon or if Ken Lewis’s unsolicited suggestions (Groupon, Sino Forest, The Thirsty Beaver, and most recently: “a P&C insurer with outsized exposure to the Northeast”) are or have ever been under consideration. Read more »