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.
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 »
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.
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 »