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I'd be surprised if this announcement helps stem redemptions.
I suspect that folks drawn to the flagship because of legendary money manager Bill Gross will not be equally drawn to management by committee, as qualified as they may be.
Will be interesting to watch.
Honestly, wish they would or could have appointed someone like PM. These same three folks might still have done the heavy lifting, but PIMCO needs a name at the top that stakeholders can both recognize and trust.
It's one of largest funds in the world.
Warrants pulling out all stops to preserve.
How PIMCO and Allianz manage this one is about as profound as it gets in this biz.
Initial reaction: Think this move is a tactical, if not strategic, mistake.
Tactical or Strategic, I don't think PIMCO had an option. First, they shouldn't have made it obvious to Gross they would be firing him. They should have had more sense. Second, they already moved toward the "invest by committee" approach, so they were committed to that line of thinking. Not using multi manager approach and going with single manager for PTTRX would not necessarily have been a better option. It takes a lot for one person to fill Gross sized shoes, both literally and figuratively.
One thing PIMCO did mess up IMO, is not having Ivascyn on PTTRX as one of the 3. He is now the voice of PIMCO. He should have been on its flagship fund. "Team" and everything is fine. There are drawbacks to "team" and "individual" approach. "Team" "works" - as M* keeps alleging at American - where each manager gets his own slice to do what he wishes with it. I don't think that's what they are doing at PIMCO with "Team". Or they should maybe do that indicating, the best of breed manager is managing his assets based on his expertise.
All In All, right now the score is Gross 5, PIMCO 0.
Comments
I'd be surprised if this announcement helps stem redemptions.
I suspect that folks drawn to the flagship because of legendary money manager Bill Gross will not be equally drawn to management by committee, as qualified as they may be.
Will be interesting to watch.
Honestly, wish they would or could have appointed someone like PM. These same three folks might still have done the heavy lifting, but PIMCO needs a name at the top that stakeholders can both recognize and trust.
It's one of largest funds in the world.
Warrants pulling out all stops to preserve.
How PIMCO and Allianz manage this one is about as profound as it gets in this biz.
Initial reaction: Think this move is a tactical, if not strategic, mistake.
c
One thing PIMCO did mess up IMO, is not having Ivascyn on PTTRX as one of the 3. He is now the voice of PIMCO. He should have been on its flagship fund. "Team" and everything is fine. There are drawbacks to "team" and "individual" approach. "Team" "works" - as M* keeps alleging at American - where each manager gets his own slice to do what he wishes with it. I don't think that's what they are doing at PIMCO with "Team". Or they should maybe do that indicating, the best of breed manager is managing his assets based on his expertise.
All In All, right now the score is Gross 5, PIMCO 0.