…to leave Pimco in order to join Janus Capital Group to manage an unconstrained bond fund.
Allianz´ shares plunge…
And as an insitutional consultant with a lot of money at PIMCO… my day just got a lot busier than I was expecting
You’re probably fielding a lot of calls from me and my ilk today.
So much this^^.
It is going to a busy next couple of weeks. At least there are plenty of good bond managers out there to choose from.
Who will gain the most from PIMCO redemptions? MetWest? DoubleLine? Western? BlackRock? JPM? Just map to a Vanguard index? It will be interesting to see!
owning any index bond etfs to me is crazy. the value of a bond is highly subjective due to illiquidity. If any stress does come, owning a bit of everything will be disastrous. Doubline ftw. that said morningstar hates them.
Doubleline Total Return isn’t really an apples to apples substitute for PIMCO Total Return. Sure, they’re getting a ton of assets right now, but most of the institutional money will go to BlackRock.
STL, why is that? I dont really know much about bond specifics except stuff i read from other people. curious to see why they arent comparable. Always thought that Gundlach was the next bond king, and kinda funny that gross almost joined gundlach. That would have been a gg.
And why Blackrock?
Doubleline TR is essentially all MBS (this is the big difference) and has much less of a global outlook, among other things. I don’t cover Doubleline, but I think I’ve heard they don’t have any corporate/treasury analysts on the team?
Anyone know what % of Doubleine Oaktree owns? If money continues to flow into Doubleline is it enough to move the needle for OAK? Just a thought
According to a Bloomberg news, Gross received a bonus of 290 mln USD in 2013. Money they´ll save now, compensating for the outflow of funds…
Grossly overpaid for performance.
Can’t believe he billed that much.
Grossly overpaid for performance, yes. Hard to argue recently. Many will outperform him and charge a lot less.
However, the day he left PIMCO, Allianz (parent company of PIMCO) lost €3.8B in market value by my calculation. Right or wrong, the man is worth a lot of money! The market speaks!
the story
Fall of the Bond King: How Gross Lost Empire as Pimco Cracked
Over $100b in outflows YTD, 40b in outflow within a couple months. prolly more outflows coming in. $300m salary is looking like a bargain at this point.
Gross outflows or net outflows?
No no no… Gross left, Net is still there.
Total Return has done very well since Gross left. Outflows have almost stopped, though I know there are still a few very large institutional investors that are going to fire PIMCO but they’re taking their time.
Really? It looks like 30 or 40 bps above the agg. Maybe that matters in FI (genuinely don’t know), in my world that’s static.