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Somebody Plans To Take Advantage Of The JOBS Act

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And that someone is PIMCO. Go figure.

The firm, based in Newport Beach, Calif., is planning an expansion of its alternative-investments business in the coming months aimed at both individual and institutional clients, including potentially launching new funds invested in assets such as distressed debt in Europe.

Douglas Hodge, Pimco's chief operating officer, called alternative investments "a very important area for us" in an interview with The Wall Street Journal. He said the firm is responding to increased demand from investors of all types, as well as to changing regulations….

"The world is going to change here because of the JOBS Act," Mr. Hodge said….

Pimco this month filed a preliminary prospectus for a new liquid alternative fund called the Pimco Trends Managed Futures Strategy Fund. The fund, available to all investors, will invest in derivative instruments linked to interest rates, currencies, mortgages, credit and commodities. Mr. Hodge declined to comment on the fund, citing a regulatory period of silence following the filing.

In a sign Pimco is targeting retail investors with these more complex products, one class of this new fund has a $1,000 minimum for investment and $50 minimum for subsequent investments, similar to many of the company's other liquid alternative funds.

Bond-King Pimco Plans to Push 'Alternative Funds' [WSJ]


Banks May Have Trouble Taking Full Advantage Of JOBS Act's New Opportunities For Deceiving Clients

My time in the financial industry entirely postdated the global research settlement, which means that I have a different view of sell-side research from some of the olds. As far as I can make out, there are people who think that investment bank research was once a demonic scheme in which research analysts - larger-than-life figures whose recommendations were irresistible to the retail investors who in this vision bought all of every pre-2003 stock offering - swindled those besotted retail investors into buying crap stocks at inflated prices so that the banks could get gigantic investment banking fees. Whereas I always thought that investment bank research was a sort of cute endeavor of unclear commercial purpose, taken skeptically by the institutional investors who buy most of every post-2003 offering, made fun of by bankers, and conducted by people whom we never saw because, among other things, our network was set up to prevent them from emailing us and vice versa. Perhaps before the settlement giants roamed the halls of research divisions, defrauding investors with abandon, but once their email was cut off from the bankers' email they retreated into mousy irrelevance? Unclear. In any case THEY'RE BACK BABY, sort of:

Il Duce and Bill Gross (Wikimedia Commons, Getty Images)

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Bill Gross forgot to ban shade-throwing in his settlement with PIMCO.