Re: Bill Gross
Posted:
Tue Oct 10, 2017 6:15 pm
by behappyalways
Re: Bill Gross
Posted:
Sat Feb 09, 2019 2:00 pm
by behappyalways
Final call
Bill Gross, the king of the bond market, abdicates
As the returns vanished, investors lost faith
OUTSIZE RETURNS are hard to come by in the bond market: the approach pioneered by Jack Bogle at Vanguard of matching a benchmark while minimising transaction fees is tough to beat.
There was one person, however, that even Vanguard’s fixed-income team considered in a class of his own and thus worth paying for: Bill Gross, who co-founded Pacific Investment Management Company (PIMCO) in 1971 after a conventional career in finance and risk, plus a brief professional foray onto the blackjack tables of Las Vegas.
On February 4th, Mr Gross and Janus Henderson, his employer for the past few years, announced that he was retiring.
For decades Mr Gross displayed extraordinary acumen, not only in evaluating securities but also in structuring the duration, or time-frame, of his portfolio. He displayed uncanny judgment about when to push maturities just a bit longer or shorter than average.
His calls were amplified by his willingness to offer his punchy opinions on television, unlike the reclusive, grumpy gnomes who managed most fixed-income investments.
That combination of talent and publicity attracted a flood of money. The assets of the fund he personally managed, PIMCO Total Return, reached a record $293bn in 2013. Mr Gross left PIMCO in 2014 after a coup.
Although he was as good at picking brainy colleagues as he was as picking securities, his analytical skills did not, apparently, extend to assessing their loyalty. Subsequently he joined Janus Henderson, a mid-sized fund manager.
Customers fled PIMCO after he left, some of them following him to his new firm. But his magic was gone. Performance was lacklustre and a steady flow of redemptions followed. Half of the $950m remaining under his control is his own money.
Theories explaining the decline are not in short supply. During his long tenure, his techniques have been studied and copied by other clever people. And the nature of debt markets may have changed over the decades.
In a televised interview after the news of his retirement, he said that his greatest error had been to misjudge the relative trajectories of German and American interest rates. Both are consequences of novel post-crisis monetary policy set by central banks.
Human factors may have taken their toll, too. His professional spat with PIMCO was echoed by a messy divorce that played out in the press.
Mr Gross said he had continued to outperform in the management of some funds outside his signature effort. This perhaps says something about where active management can be effective—in niches. He will now focus on managing his own money and his $390m charitable foundation.
That his departure closely follows the accolade-packed obituaries of Mr Bogle, the architect of Vanguard’s strategy of emphasising efficiency over genius, underlines just how much money-management changed during the two men’s storied careers.
Source: The Economist
Re: Bill Gross
Posted:
Wed Jun 02, 2021 9:21 am
by behappyalways
Bill Gross: The Fed Can't Keep Its "Pedal To The Metal" Much Longer
https://www.zerohedge.com/economics/bil ... uch-longer
Re: Bill Gross
Posted:
Tue Sep 07, 2021 8:40 am
by behappyalways
Bill Gross Mocks "Wokeness", Lashes Out At Bonds As "Investment Garbage"
https://www.zerohedge.com/markets/bill- ... nt-garbage
Re: Bill Gross
Posted:
Thu Nov 18, 2021 9:21 pm
by behappyalways
"It's Dangerous" - Bill Gross Warns Investors Have Been Lulled Into "Dreamland" By Central Banks
https://www.zerohedge.com/markets/its-d ... tral-banks
Re: Bill Gross
Posted:
Fri Mar 04, 2022 4:52 pm
by behappyalways
"Don't Get Too Excited" - Bill Gross Warns Investors That Surging Inflation Will Topple Stocks
https://www.zerohedge.com/political/don ... ple-stocks
Re: Bill Gross
Posted:
Tue Aug 15, 2023 4:46 pm
by behappyalways
Bill Gross Is Bearish On Both Bonds And Stocks, Sees Inflation Stabilizing At 3%
https://www.zerohedge.com/markets/bill- ... bilizing-3
Re: Bill Gross
Posted:
Thu Sep 14, 2023 4:24 pm
by behappyalways
Feuding Fed-Watchers: Gross Gores Gundlach Over 'Bond King' Title
https://www.zerohedge.com/markets/feudi ... king-title