Pimco Pushes into New Territory with its First Equity Fund
Reported by Stephanie Bernhard
PIMCO has taken a long-planned leap into the world of equity investing with today's launch of the EqS Pathfinder Fund, which will invest in companies all around the globe, according to a company release. The deep value equity fund will be actively managed by executive vice presidents and portfolio managers Anne Gudefin and Charles Lahr, who joined PIMCO as part of its expansion in January 2010 and December 2009, respectively. Pathfinder is the first actively managed equity strategy in the new PIMCO Equity Series.
Managing director for new investment initiatives Neel Kashkari came on board at PIMCO in May 2009, also as part of the firm's push into the equity space. In an interview on PIMCO's Web site, Kashkari said the firm needed to build up its equity platform now because its clients are "increasingly looking to PIMCO as a trusted advisor that provides complete global investment solutions, rather than merely offering investment products." Kashkari also said investors were interested in less traditional products that transcend geography, styles, and capitalization boundaries in the quest for peak performance. He claims PIMCO's new fund offers such flexibility.
According to an SEC filing, Allianz Global Investors Distributors serves as distributor for the fund. PIMCO is the fund's administrator. The custodian is State Street Bank & Trust Co., and the transfer agent is Boston Financial Data Services, Inc.PricewaterhouseCooper LLP serves as the fund's independent registered public accounting firm, and Dechert LLP provides legal counsel.
Company Press Release
NEWPORT BEACH, CA (April 14, 2010) – PIMCO, a leading global investment management firm, is launching the PIMCO EqS Pathfinder Fund, a “go anywhere,” global, deep value equity strategy.
PIMCO EqS Pathfinder is the first actively managed equity strategy in the new PIMCO Equity Series (EqS). It is managed by Anne Gudefin and Charles Lahr, Executive Vice Presidents and Portfolio Managers based in London and New York, respectively. Mr. Lahr joined PIMCO in December 2009 and Ms. Gudefin joined in January of this year.
“We have established the PIMCO Equity Series and created the PIMCO EqS Pathfinder Fund as part of the firm’s continuing evolution as a provider of global investment solutions to clients across the world,” said Neel Kashkari, Managing Director and Head of New Investment Initiatives. “PIMCO’s time-tested standards of excellence, global investment outlook, intellectual capital and deep resources are guiding our approach to actively managed equities as we continue to build out our suite of equities strategies.”
Ms. Gudefin and Mr. Lahr are highly regarded global deep value investors, bringing to PIMCO a combined 36 years of experience in a discipline that aims to identify securities priced at a significant discount relative to their intrinsic value.
“The PIMCO EqS Pathfinder strategy will apply our deep value equity investing expertise and be complemented by PIMCO’s extensive research and investment management capabilities and global platform,” said Ms. Gudefin. “Our robust approach to security analysis, stock selection and portfolio construction will benefit from firm-wide insights into the factors that drive economies, liquidity and markets, as well as the firm’s highly regarded capabilities in credit research and risk management across the capital structure.”
Added Mr. Lahr: “Global deep value is designed to be a compelling strategy in any market environment, including today’s world, where shifting growth drivers, resetting economies and the gap between short-term exuberance and long-term realities can obscure underlying value in certain securities. With PIMCO EqS Pathfinder, we plan to employ our resources and know-how to identify undervalued stocks as well as merger arbitrage and distressed debt opportunities wherever they exist.”
Potential benefits of PIMCO EqS Pathfinder include:
A truly global approach to equity investing, with “bottom-up” stock analysis complemented by PIMCO’s global economic outlook and extensive research resources
Time-tested deep value philosophy and process
Primary focus on global equity securities, supplemented by value oriented distressed debt and merger arbitrage and tactical strategies such as hedging
Potential outperformance and lower volatility relative to broad global equity indexes
Risk management that aims to mitigate downside potential in all market environments
Institutional shares of the PIMCO EqS Pathfinder Fund will trade under the ticker symbol PTHWX. Additional tickers include “D” shares (PTHDX), “A” shares (PATHX), “C” shares (PTHCX), “R” shares (PTHRX), “P” shares (PTHPX) and Administrative shares (PTHNX).
PIMCO, founded in 1971, is a global asset management firm that manages investments for an array of clients, including retirement and other assets that reach more than 8 million people in the U.S. and millions more around the world. Our clients include state, municipal and union pension and retirement plans whose beneficiaries come from all walks of life, from educators to healthcare workers to public safety employees. We have a substantial individual investor client base, and work in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are also advisors and asset managers to central banks, corporations, universities, foundations and endowments. With offices in North America, Europe, Asia and Australia, we manage investments across a full spectrum of global financial markets. PIMCO is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.