Reason Number One the abrupt departure of Pimco Chief Executive Mohamed El-Erian will not only not hurt the firm but will in fact help it: the old structure of having one chief investment officer sucked. The new structure of having six deputy chief investment officers rocks.
Reason Number Two Pimco 2.0 will make Pimco 1.0 look like a "Before" picture: seating arrangements.
Reason Number Three El-Erian did everyone a favor by leaving: because Bill Gross has an exclamation point that says so.
Pimco's Bill Gross, manager of the world's largest bond fund, on Tuesday sought to reassure the firm's clients about the new leadership structure he has put in place since his heir apparent stunned the investment community last month by announcing his departure. Gross called the collection of six new deputy chief investment officers a "significant improvement" from Pimco's previous structure, which concentrated nearly all investment strategy decision making onto the shoulders of Gross and Pimco Chief Executive Mohamed El-Erian...In a letter posted on Pimco's website, Gross said: "We will take turns chairing our daily meetings, which will allow for greater focus on certain sectors and regions. I also find that I often prefer to sit at the side of the table rather than at the head of it. I can contribute more effectively that way, learn more by listening, and it gives others the opportunity to lead." ...
"We believe this new format, and the idea sharing it will facilitate, will be more responsive to market developments," Gross wrote. "It will be great!"
That's right! You listen to the exclamation point!