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Can Gross survive inside baseball account of events at Pimco?

  • "I have a 41-year track record of investing excellence," Bill Gross (BOND) told Mohamed El-Erian last summer according to 2 witnesses, reports the WSJ of the events leading to El-Erian's upcoming departure from Pimco. "What do you have." "I'm tired of cleaning up your s---," responded El-Erian.
  • The article depicts Gross, a naval officer in the Vietnam War, as something of a martinet - not liking employees speaking with him or making eye contact, especially in the morning, preferring silence on the trading floor, and not appreciating dissent once he's made up his mind about an investment.
  • "If only Mohamed would let me, I could run all the $2 trillion myself…I'm Secretariat" said Gross last year in front of a group of traders. "Why would you bet on anyone other than Secretariat?"
  • "There is no way for Gross to recover from this article. He knows it too," writes Felix Salmon, calling the piece a "fatal blow to the career of the greatest bond investor of all-time."
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Comments (14)
  • dacama1
    , contributor
    Comments (220) | Send Message
     
    Maybe he (Gross) should now focus on his stamp collection.
    25 Feb 2014, 07:49 AM Reply Like
  • Director one
    , contributor
    Comments (62) | Send Message
     
    You shouldn't be surprised..........just another ego maniac running other peoples savings.........The attitude and ego very siimliar to MADDOFF....... just another pied pipper leading the sheep.........His partner should be happy to find other employement...........
    25 Feb 2014, 07:51 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (3658) | Send Message
     
    I'd like to be a fly on the wall of the boardroom at Germany's Allianz, which owns Pimco. Of course I'd have to be a German-speaking fly.
    25 Feb 2014, 08:54 AM Reply Like
  • chopchop0
    , contributor
    Comments (4001) | Send Message
     
    Gross is one part arrogant and one part foolish. He called the bottom in treasuries a few years ago LOL and the top in stocks not long after.
    25 Feb 2014, 08:57 AM Reply Like
  • frosty
    , contributor
    Comments (713) | Send Message
     
    Gross - good name.
    25 Feb 2014, 09:08 AM Reply Like
  • kb9778
    , contributor
    Comments (11) | Send Message
     
    Certainly sounds like a long, long way from Butler Creek.
    25 Feb 2014, 09:33 AM Reply Like
  • swiaders
    , contributor
    Comment (1) | Send Message
     
    Dizzy Dean said, " It ain't braggin' if you can do it". Gross has done it for decades. I remember hearing him on Bloomberg radio explaining in plain English the leveraging that was going on before the last credit meltdown. Saved or made money for anyone who had ears.
    25 Feb 2014, 09:33 AM Reply Like
  • SoCalNative
    , contributor
    Comments (605) | Send Message
     
    I spent 6 months (I quit) at PIMCO right after college and I can tell you it was a bummer.

     

    The culture was condescending, elitist and downright unfun. And it all stems from the top. Gross created and was quite pleased I'm sure with the culture during that time. Rumor has it not much has changed.
    25 Feb 2014, 10:27 AM Reply Like
  • Jerbear
    , contributor
    Comments (898) | Send Message
     
    Bill Gross has become a celebrity and quit being an investor long ago. Once the media showers them with attention their head swells and they think they can do nothing wrong.

     

    I lost interest in Bill Gross during the great recession. He made a lot of bad calls and the media did not hold him accountable.
    25 Feb 2014, 11:32 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1542) | Send Message
     
    If you can't attack the record, attack the person...investors choose Bill Gross because of investing prowess, not because he is Miss Congeniality.
    25 Feb 2014, 12:10 PM Reply Like
  • NYer1
    , contributor
    Comments (1570) | Send Message
     
    These articles/blogs put a lot of what has been happening with some of the Grossly (pun intended) overvalued Pimco funds in perspective. (PHK and PGP to name a couple that trade at stratospheric PREMIUMS ABOVE their Net Asset Value)
    Regardless of great past performance Gross and the board are not behaving rationally in the way he manages PHK, its risks and distribution rate.

     

    It might be the first small puncture in a long waiting to be blown up bubble.

     

    If we see large redemptions in his funds over the next few weeks it is quite reasonable to expect a selloff in PHK as well.

     

    If/when Gross quits - (see Felix Salomon's take on this here: http://reut.rs/10ZXtEw ) - you will probably be able to say hi to $9..from above.
    25 Feb 2014, 12:41 PM Reply Like
  • Sting71
    , contributor
    Comments (75) | Send Message
     
    Do you like Gates, Buffett, Icahn? I do not have to like someone who performs and does what he says he will do with my money. Bill Gross does exactly as he says he is going to do. Please do not invest with him if you do not like what he says.

     

    I am long on Pimco and Bill Gross.
    25 Feb 2014, 01:06 PM Reply Like
  • NYer1
    , contributor
    Comments (1570) | Send Message
     
    Actually I don't like Idols - I respect them as people who achieved a lot but that has nothing to do with their investment performance going forward.
    Re Buffet, for example, what has he done over the past 10 years?
    15% below the SP 500, 80% below the Nasdaq 100, 22% below the Russell 1000.
    The law of large numbers is not easy to overcome and so is old age.
    I'd take Buffett any day over Pimco (and Gross) with his inflated ego and reckless endangerment of other people's money with the derivative bets he takes in PHK in order to plug the hole he is in to make up for the income he does not earn on its bond portfolio (that is at least 8% a year he needs to make up for just to maintain the inflated distribution rate).
    Take Buffett's advice and do not invest in something you can't understand.
    No one understands how PHK can earn 18% a year to cover its distribution rate (few stock funds can do it, none on a consistent basis), it is run almost like a black box with very little transparency but people are willing to pay 50% premium for this privilege - no one understood MAdoff as well as he kept honoring redemption requests.Until something hit the fan.Madoff was an idol as well for decades.
    25 Feb 2014, 01:28 PM Reply Like
  • Dr Joseph Haluska
    , contributor
    Comments (505) | Send Message
     
    Bill Gross IS Secreteriat! He is merely being humble (look up the definition of the word) and he has earned the right to say it--
    when you're pushing an F1 car to chest crushing speeds...
    when you're sculpting a heart valve inside a living chest...
    when you're doing something better than anyone else can do, that no one else can do, or that no one else will do, and bearing a responsibility that none of us could possibly understand (including an opportunistic self-serving journalist who got the chance to kick a guy when he's down)....
    a human being in that position has to muster a degree of self-confidence and belief in himself, also likely beyond our comprehension, without which he could never do it.
    So, WTF if he sounded a little arrogant? He's only human!
    IMO, El-Erian needed a reality check.
    I'd like to shake Bill Gross' hand. I'd hug him.
    25 Feb 2014, 08:51 PM Reply Like
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