Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I am confused.......Isn't Bill Gross the one who did NOT get into Treasuries in 2011 when there was money to be made as interest rates dropped? I thought he was the renown leader of bond investing, but he seems to be a year or two behind the rest of the pack?
Uncle Bill seems to me always a step behind. El Erian makes sense to me. But when I indulge myself and just sit listening to the talking-head guests on Bloomberg or CNBC, it is Gundlach who shoots straightest, to me, even as he confesses that "I wish I could TEACH this." And he makes a point of knowing his own limitations. (Almost sounds like an iNtuitive-Type, like myself, on the Myers-Briggs Psych Profile.)
"The Dude abides," man... In the following link, in case anyone is f****** OFFENDED, you can remember that I did not put the headline on the sucker. It's someone else's. When Sam Elliott explicitly asks uncle Jeff 'why do you have to use so many cuss words?" The Dude tells him, "what the f*** you talking about, man?"
Seems like Gross is playing us. His fund is well into riskier bets! 45% in bonds with 10 yr plus maturity. And only 9% in us treasuries. The 57% leverage says something also. Of course all this data might be stale. Standard caveats apply.
I do not like PTTRX. Because of the size of the fund, he is using synthetic exposure to various bond sectors using derivatives. I would rather invest in plain vanilla bond fund these days.
Reply to @Investor: Because of its sheer size PTTRX has long lost its ability to move in and out of bond sectors quickly. Pimco Unconstrainted bond is better choice with the smaller asset base while sharing similar strategy. Doubleline Total Return is another viable alternative focusing on mortgage sectors which are less interest rate sensitive.
The extensive use of derivatives is a hallmark of Pimco bond funds. Over the longer term (i.e. 10+ years) this strategy manages to out-perform their respective benchmarks. Like many active managers they will have their poor-performing years such as 2011.
The more interesting question to ask is how will these funds do when interest rate eventually goes back up again?
Reply to @Rbrt: M* portfolio info on Pimco funds is always many months stale. For monthly portfolio updates on Pimco funds, which are about 4-5 days old when they come out, go here: http://investments.pimco.com/Pages/Default.aspx and go to the page for the fund you're interested in, then click on "Portfolio Statistics" under "Core Documents" in the middle column. (Actually any fund page takes you to the same Excel sheet.)
Pttrx still had roughly 30% in U.S. gov debt as of the end of April. The new breakdown as of the end of May will be out in about 8-10 days ....
Geez, Bill said, ""It's what we call the cleanest dirty sheet, and at the moment the cleanest dirty shirt is the United States," Gross told CNBC's "Street Signs." "It's Treasurys, it's those 1.75 percent 10-year Treasurys that are definitely overvalued but at a time of crisis appreciate in value or least least hold their value."
I believe a while back I referred to the US Dollar and Treasuries as the least smelly fish in the pile [or something like that]. It still is. It's basically worthless and getting cheaper by the minute - BUT realative to the alternatives . . .
I don't care for treasuries other than for short term spending money. Give me corporate debt, hiyield, or better yet, blue chip dividend paying stocks.
Comments
In the following link, in case anyone is f****** OFFENDED, you can remember that I did not put the headline on the sucker. It's someone else's. When Sam Elliott explicitly asks uncle Jeff 'why do you have to use so many cuss words?" The Dude tells him, "what the f*** you talking about, man?"
Seems like Gross is playing us. His fund is well into riskier bets! 45% in bonds with 10 yr plus maturity. And only 9% in us treasuries. The 57% leverage says something also. Of course all this data might be stale.
Standard caveats apply.
The extensive use of derivatives is a hallmark of Pimco bond funds. Over the longer term (i.e. 10+ years) this strategy manages to out-perform their respective benchmarks. Like many active managers they will have their poor-performing years such as 2011.
The more interesting question to ask is how will these funds do when interest rate eventually goes back up again?
Pttrx still had roughly 30% in U.S. gov debt as of the end of April. The new breakdown as of the end of May will be out in about 8-10 days ....
Geez, Bill said, ""It's what we call the cleanest dirty sheet, and at the moment the cleanest dirty shirt is the United States," Gross told CNBC's "Street Signs." "It's Treasurys, it's those 1.75 percent 10-year Treasurys that are definitely overvalued but at a time of crisis appreciate in value or least least hold their value."
I believe a while back I referred to the US Dollar and Treasuries as the least smelly fish in the pile [or something like that]. It still is. It's basically worthless and getting cheaper by the minute - BUT realative to the alternatives . . .
I don't care for treasuries other than for short term spending money. Give me corporate debt, hiyield, or better yet, blue chip dividend paying stocks.
and so it goes,
peace,
rono