Troubles at PIMCO

So PIMCO funds aren't low-cost are they?

At 70, what does he have left to prove? Or just want to have more to leave to his heirs?

Instead of FIRE'ing, he's going to try to screw over his old bosses?
 
CNBC is reporting that Gross would have been fired (not FIRE'd) so this move seems a pre-emptive action on his part.
 
pb4uski said:
+1 Perhaps the thread should be titled "Troubles soon to come to Janus". I think he is too full of himself. Why doesn't he just retire?
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Don't you think Janus has had enough problems? Maybe Bill will enjoy a Rocky Mountain High?

Sent from my SAMSUNG-SGH-I337 using Early Retirement Forum mobile app
 
Maybe a little pot smoking behavior modification is just what Billy needs. Rumor has it he's been acting a little strange of late. Probably due to low interest rates.
 
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.
 
What about Paul McCulley? He retired from PIMCO 3 1/2 years ago, and after ME-E left Gross convinced him to return. He even cut his hair. Only to be dumped like a bad prom date. Talk about ruining someone's retirement. A lesson for all of us.
 
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 ...
 
explanade said:
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 ...
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Seeing he was top banana, maybe he wrote his own contract. ;)
 
I heard CNBC talk about Allianz. So maybe they were acquired at some point by a big bank.

Obviously he wasn't the owner of the company or else he wouldn't be forced out and erratic behavior wouldn't matter if he had ultimate control of the company.

The Janus fund has only like $12 million in assets compared to over a trillion in the PIMCO funds he used to manage. Will he try to poach PIMCO clients?
 
PIMCO Total Return is the only bond option in DW's 401K. We have six figures riding on this fund. I have been lobbying for a Fidelity or Vanguard alternative. This might force a change.
 
explanade said:
...The Janus fund has only like $12 million in assets ...
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I thought that couldn't possibly be right but that is what Forbes is reporting. Heck, Gross is worth a reported $2.3 billion.

Gross is set to helm the Janus Unconstrained Bond Fund, which currently has $12.9 million under management. That’s a far cry from the $221 billion he ran as manager of the PIMCO Total Return Fund.
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FIREd said:
PIMCO Total Return is the only bond option in DW's 401K. We have six figures riding on this fund. I have been lobbying for a Fidelity or Vanguard alternative. This might force a change.
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DW's 401K was the same for many years but they added VG bond indexes and we moved over yesterday.
 
FUEGO said:
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.
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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.

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.
 
FUEGO said:
Picking last year's winning managers is somewhat like picking last night's winning lottery numbers.
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I made that mistake early in my investing days. Mostly by reading Money mag and taking their suggestions :nonono:
 
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.
 
Donzo said:
I made that mistake early in my investing days. Mostly by reading Money mag and taking their suggestions :nonono:
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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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