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Pimco's Bad Bets On Emerging Markets Add To Firms Trouble
Difficult to say without knowing the dynamics of decision making at PIMCO in the last few years. It is clear that there was a change in the investment decision process. Whether the mis-steps were due to Bill Gross himself and his centralized style or an outcome of more decentralization as El-Erian wanted isn't clear. My bet would be on the latter than the former. But Bill Gross eventually has had to take responsibility.
For several years Bill Gross was on record predicting that higher inflation and interest rates were just around the corner. That presumably led to some bad bets. It can happen to the best of them. I'm in SUBFX which is underperforming for just that reason.
Meanwhile at Pimco Daniel Ivascyn's funds (PIMIX, PDI) continue to knock the ball out of the park. I guess you've got to choose a manager more than a shop.
cman: One thing for sure there was more confusion now than ever. I moved on on all my Pimco funds to elsewhere. When Paul McCulley was at Pimco his views were much more clear and direct. Today there is a constant outflow from Pimco. The only saving grace is that many Pimco products are in 401(K) plans.
Meanwhile at Pimco Daniel Ivascyn's funds (PIMIX, PDI) continue to knock the ball out of the park. I guess you've got to choose a manager more than a shop.
IMHO, the Ivascyn funds are about all that's left worth investing in at Pimco. Unfortunately for the OEF and its AUM, that's looking like an, um, broadly shared view. Looking forward to the launch of the ETF ...
I bought PEBIX back in March when cman noted the strength in the emerging markets. I am happy with the performance of PEBIX. Pimco has some good funds, so I would not disregard all of them.
Comments
Bill Gross has been lagging his peers for several years. Quietly his rival, Jeff Gundlach, is outpacing Bill for the last several years.
Meanwhile at Pimco Daniel Ivascyn's funds (PIMIX, PDI) continue to knock the ball out of the park. I guess you've got to choose a manager more than a shop.