Seeking Alpha

Gross defended by Bloomberg's Klein

  • "Many successful businessmen tend to be eccentric characters," writes Bloomberg's Matthew Klein, taking issue with Felix Salmon's call for Bill Gross (BOND) to hang it up after today's account from the WSJ about the goings-on at Pimco amid the Mohamed El-Erian departure.
  • The scoreboard matters, and Gross' Total Return Fund has beaten its benchmark nearly every year since forever. "If anything, this performance helped subsidize the rest of the company by convincing investors that some of Pimco's other products were also worth investing in." A thoughtful economist and erudite man, El-Erian simply doesn't have Gross' trading chops. The fund at Pimco he's most associated with - the Multi-Asset Fund - has returned an average of 5.4% annually since 2008 inception, putting it near the bottom of its category.
  • "I'd be shocked if clients hadn't known about Gross' quirks long before the recent Journal article," concludes Klein, reminding of Steve Jobs who was also notoriously difficult on those around him in the workplace.
Comments (1)
  • wdchil
    , contributor
    Comments (1071) | Send Message
     
    Felix Salmon's piece was no better than that of the WSJ - journalism more fitting for the National Enquirer. Investors in the total return fund would hit the exits if Bill Gross were to leave. Hopefully this new course will include the development of the deputies for future leadership.
    26 Feb, 06:25 PM Reply Like
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