I disagree with the MFO commentary on Oct. 1st regarding Bill Gross's Departure. What bothered me was the comments telling readers to fire adviser's, endowment consultants, and cancel subscriptions of anyone recommending the sale of the fund.
I ask anyone, why would you stay? There is no simple understanding of what is in that behemoth of a portfolio. No representative or conference call has ever been able to explain what they do coherently. The derivative positions in the fund are unlike anything ever seen. Liquidity concerns are unknown to the public, but PIMCO reassures us their aren't any (Heard this before.hm,hm,) Two major changes in management over the past year. And the fund grew at the expense of shareholders (in my opinion).
I don't think PIMCO's boat is going to sink, but it's the Mobro 4000. There are too many options out there, why sail with this pile of garbage.
I guess I'm baffled because this fund does not even meet the Sniff test of MFO based on what I've read on this website as far back as fundalarm.
I love the MFO, Just curious on others opinion.
Comments
The commentary was talking about Pimco in general and was not specific to Total Bond.
Buy the manager, not the fund. If you believe that, you should leave PTTRX. You should however not leave PIMCO if you have another fund you bought for different manager.
I sold PTTRX 401k. I continue to use PAUDX managed by Arnott in IRA.