Redemptions

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 »

Bob Chapman: He hit a kid with his car, sure, and it’s true I said his behavior can be ‘extraordinarily odd,’ but that doesn’t mean he’s not a masterful steward of capital any one of you would be lucky to have manage your money. Read more »

They redeemed 90 percent of their money because they thought everyone else was going to redeem for that reason. Read more »

  • 09 Sep 2013 at 12:03 PM

Layoffs Watch ’13: Comac Capital

The UK firm’s decision to cut 1/3 of its staff is said to be part of a “strategic” plan to stop losing money. Read more »

As many of you know, the last number of months have not been the best of times for hedge fund manager Steve Cohen. In addition to taking it up the tailpipe from several federal agencies, some of which he’s written $600+ million checks to, others whose fearless leader eats raw meat for breakfast and hopes to one day feast on Cohen tartare, the SAC Capital founder has seen friendships tested and found where loyalties lie. And it hasn’t been pretty.

Employees, despite being told their jobs are safe, have been holding exploratory interviews with other funds in hotel rooms that rent by the hour. The guy who previously said he’d be there through “the bombs going off” left Cohen in the trenches, alone, taking grenades. Clients have requested their money back on en masse; as of Friday night, virtually all outside investors were expected to have filed redemptions requests if they had not done so already.

Except for one. Read more »

Eddie Lampert: Investor-Relations Wiz Kid

Curious about that surge in AutoNation trading volume this week? Well, I’m going to venture a theory, anyway: It may have something to do with ESL Investments’ continuing campaign to teach redeeming shareholders to be careful what they wish for. Read more »

Redemption Watch ’13. Read more »

If anyone was considering redeeming from the fund, just slow down and think things through; you don’t want to wake up in the morning and realize you’ve made the biggest mistake of your life, walking away from all this [gestures to warehouse full of fleece apparel]. Read more »