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Old 09-27-2014, 11:41 AM   #21
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How much 4 years can change opinions! Fund manager of the decade!

https://corporate.morningstar.com/US...&filter=PR4459
Picking last year's winning managers is somewhat like picking last night's winning lottery numbers.
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Old 09-27-2014, 11:50 AM   #22
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Makes me glad I have incredibly boring Vanguard index funds (with a few ishares ETFs index funds thrown in for spice). I'd hate to have to consider selling a highly appreciated position (which is almost everything I own now) and taking a tax hit if the managers change suddenly and I want out.
I thought PIMCO, like any managed fund would be spinning off the interest and capital gains each year as you go along so there should not be a major tax hit for this? How could this result in a major tax hit when you sell? I thought the deferral of taxes was a benefit of index funds and the tax hit hen you sell was their downside, not managed funds. I would think the 25- 30% excess return Gross was providing versus the benchmark index over the last 10-15 years would have paid all taxes due and resulted in a large post tax position.

For performance over the index it is competing against Morningstar said PIMCO total return fund averaged 1.4% better per year for the last 10 years (6.0% vs 4.6%) for last 5 years 5.1 vs 4.1 for the last 3 years 4.4 vs 2.4 for the last year it is down 3.5 vs 4.0. To state that one down year is proof managed money cannot work is incorrect.

And the fact that Janus has such a low starting base is going to be an asset for anyone getting in early with him, as he was able to earn outsized returns with an amazing level of funding that few money managers can handle. It is possible his age though is resulting in a cognitive decline that will effect future returns, but in interviews I have seen, he still seems real sharp.
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Old 09-27-2014, 12:15 PM   #23
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Picking last year's winning managers is somewhat like picking last night's winning lottery numbers.

I made that mistake early in my investing days. Mostly by reading Money mag and taking their suggestions
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Old 09-27-2014, 01:33 PM   #24
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PIMCO employees were not allowed to talk to him during the day nor make eye contact.

They had to be in the office at 4:15 AM.

Appears he drove out Mohammed El Eryan.
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Old 09-27-2014, 01:42 PM   #25
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I made that mistake early in my investing days. Mostly by reading Money mag and taking their suggestions
I've been a Money reader for over 20 years. To me, they advocate no-load, low-cost index funds more than anything.
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Old 09-27-2014, 05:44 PM   #26
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I thought PIMCO, like any managed fund would be spinning off the interest and capital gains each year as you go along so there should not be a major tax hit for this? How could this result in a major tax hit when you sell? I thought the deferral of taxes was a benefit of index funds and the tax hit hen you sell was their downside, not managed funds. I would think the 25- 30% excess return Gross was providing versus the benchmark index over the last 10-15 years would have paid all taxes due and resulted in a large post tax position.
Now that you mention it, you're probably right regarding most PIMCO funds (are all of them bond funds?). Bond funds don't tend to have a lot of capital appreciation over time like equity funds do. Most gains from bonds are interest payments. So maybe my fears of high cap gains coming due aren't as warranted for PIMCO given they manage mostly bond funds (on an AUM basis).

Otherwise, many actively managed equities funds do appreciate over time, only spitting out some of the gains in the form of CG distributions and dividends.
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Old 09-27-2014, 05:56 PM   #27
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I think he rode the bond bull for all it was worth. Now, not so easy.
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Old 09-27-2014, 07:15 PM   #28
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This, IMHO, really gets back to the issue of what to do when you have a stellar fund that implodes for reasons other than market sector. I have OAKIX which has been stellar until recently and wonder why I am standing put.
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Old 09-30-2014, 07:28 AM   #29
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Sounds like Gross is going to a competitor to try to hurt his previous employer. You'd think he'd have a non-compete clause in his contract?

Still wanting to prove something at 70 ...
Definitely not FIRE material. He'll probably die at his desk...
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Old 10-02-2014, 02:56 PM   #30
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I sold half of our PIMCO Total Return stake in DW's Fidelity 401K. She signed up for Brokeragelink and the money will be going to a plain total bond index ETF. The PIMCO fund's high expenses were arguably justified by Gross' superior record over the years, but not anymore, especially in this low yield environment. I am still pondering what to do with the second half. A TIPS fund maybe.
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Old 10-02-2014, 03:05 PM   #31
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I am still pondering what to do with the second half. A TIPS fund maybe.
Only a few weeks until PenFed usually rolls out their annual "CD Special". Worth waiting to see what they do this year?
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Old 10-02-2014, 03:09 PM   #32
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Only a few weeks until PenFed usually rolls out their annual "CD Special". Worth waiting to see what they do this year?
I think that I only have access to brokered CDs with Brokeragelink (inside a 401K). I do have some cash stashed up elsewhere to take advantage of any Penfed CD special however.
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Old 11-03-2014, 03:12 PM   #33
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Gross calls for fiscal stimulus.

Grounded in sand, Bill Gross calls for fiscal stimulus - MarketWatch

Says monetary stimulus hasn't been enough. Didn't he criticize QE?
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Old 11-03-2014, 03:15 PM   #34
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More importantly, when will he finally STFU?
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