Storied bond investor Bill Gross quits Pimco for Janus - →
finance.yahoo.com/news/bill-gros … 42440.html
NEW YORK (Reuters) - Bill Gross, one of the bond market’s most renowned investors, on Friday quit Pimco, the huge investment firm he co-founded more than 40 years ago and with which his name has been effectively synonymous, for Janus Capital Group, a distant rival in the asset management arena.
PIMCO exchange-traded fund faces SEC investigation - →
usatoday.com/story/money/201 … /16143671/
The Securities and Exchange commission is investigating whether a PIMCO exchange-traded fund artificially inflated its returns, according to the Wall Street Journal.
Investigators are trying to determine if the fund bought securities at a discount and then reported a higher price shortly after purchase. Bonds are not traded or priced as often as stocks, and funds sometimes have to use prices provided by third parties.
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PIMCO CIO William H. Gross to leave the firm - →
pimco.com/EN/PressReleases/P … -firm.aspx
Mohamed El-Erian: the man who quit his $100 million job to spend more time with his daughter →
smh.com.au/business/mohamed- … 0mjdn.html
As the head of a $2 trillion global investment fund, Mohamed El-Erian had scaled the heights of the financial world and, in the process, garnered a reputation as a world-renowned economic thinker.
But it was a simple conversation with his 10-year-old daughter about brushing her teeth that prompted him to quit his coveted post.
Mr El-Erian, 56, sent shockwaves through the financial world when he announced his resignation as chief executive of global investment firm Pacific Investment Management Company (PIMCO) in January.
He has since revealed the reason behind his decision: a handwritten note from his young daughter outlining 22 milestones in her life he had missed that year due to his gruelling work schedule.
Wonder will he be un-retiring now?
REPORT: Bill Gross Was Going To Be Fired Tomorrow For ‘Increasingly Erratic Behavior’ - →
businessinsider.com/cnbc-bil … red-2014-9
CNBC’s David Faber reports that PIMCO was going to fire Chief Investment Officer Bill Gross on Saturday because of “increasingly erratic behavior.”
The Wall Street Journal is also reporting that PIMCO was going to fire Gross before he resigned.
It appears that the billionaire bond god made his move first.
Gross, 70, announced Friday morning that he was leaving the firm he cofounded effective immediately. He’s joining Janus Capital, where he’ll run a newly created bond fund. Shares of Janus surged on the announcement.
According to Faber, PIMCO employees had said that they would leave PIMCO is Gross didn’t go.
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Maybe he was forced out for being so wrong on interest rates. And a lot of other things
In other news Margin Call was on BBC2 last night…
He’s 70 years old, you’d imagine he would call it a day, but I suppose bonds are his life and he wouldn’t know what to do with himself which is possibly why he joined Janus even if it is managing a 13 million portfolio.
What Is Janus Capital Group? →
blogs.wsj.com/moneybeat/2014/09/ … tal-group/
So what is Janus Capital Group, and who is Dick Weil?
Mr. Weil, an alumnus of Pimco, joined Janus in 2010 as its chief executive. Like Mr. Gross, he is a graduate of Duke University. On his watch, Janus has diversified the mutual-fund company into bond funds and alternative assets. On a July call with analysts, Mr. Weil called the fund’s move into bonds “a success story.”
Janus has been beefing up its team lately. In July, the firm announced that Myron Scholes, who won the Nobel Prize in economics for co-developing the Black-Scholes model for pricing options, joined as chief investment strategist.
Janus is a fraction of the size of Pimco, which runs the world’s largest bond fund and oversees nearly $2 trillion in securities. By contrast, Janus reported assets under management of less than $200 billion earlier this year.
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Pimco may suffer over $200B in outflows: Deutsche - →
finance.yahoo.com/news/pimco-may … 41029.html
Starting Monday, Gross Trades Against Gross. Should Be Fun for Pimco - →
bloomberg.com/news/2014-09-2 … -line.html
Janus Capital’s bombshell press release on Friday morning stated the so-called bond king would start at the firm today and begin trading a week later. He knows every one of Pimco’s positions, not just in the liquid market for Treasuries but in the less liquid markets for, say, Italian or Spanish bonds.
A lot of them are controlled with derivatives, making a precarious play even more so.
“When it comes to bonds,” the New York Times reported Friday, “Pimco fund managers own nearly everything: commanding positions in United States Treasuries, government-owned companies in Russia and Brazil and every variety of mortgage security.”
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Surprised By Gross’s Departure? So Was Allianz, Pimco: Bloomberg - →
blogs.barrons.com/focusonfunds/2 … bloomberg/
Of course, the move wasn’t a total surprise, as Gross had become more embattled in the past year, as his flagship fund has suffered 16 consecutive months of outflows amid lackluster performance, even as other bond funds have attracted new money, and last week brought news of an investigation by the Securities and Exchange Commission. There is plenty of talk that he was on the verge of being fired when he quit.
Gross’s disdainful attitude toward management also makes his exit less shocking, as does the fact that a succession protocol was finally cobbled together earlier this year, after the surprise departure of Mohamed El-Erian.
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