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Rating:Gross Speaks. Just a Lax and Misunderstood Man? Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, December 19, 2014

Gross Speaks. Just a Lax and Misunderstood Man?

News summary by MFWire's editors

Growth in the U.S. economy is going to slow next year from three percent to just two percent, said Bill Gross in his first interview since leaving Pimco for Janus earlier this year ... wait, CNBC had an exclusive with Bill Gross and talked economics?!

Fortunately not, though Gross did eventually get caught up in a detailed conversation on TIPs.

The most interesting parts had nothing to do with investing.

Don't say that he was "harsh", "arrogant" or even "very forcefull." Gross reflected on his management style:
Too my way of thinking, until I left my management, style was too lax and too loose and that's why we had CEOs and co-CIOs like Mohammed El-Erian so I think it was a little and I think if you ask the average Pimco person that they would probably agree with that.
And, Bill does not think that he is crazy. The sunglasses at Morningstar may have just been his way of bringing life to an otherwise dull event. Asked if he "is a little bit crazy," he responded thusly:
No. My investment outlooks and you can go back to 1981- you know they have always been full of rather human stories about my family and about individuals but also about life itself. What I have tried to do with those, and what I have tried with my personal life, is bring a little life to the bond market. Bond people are really pretty dull people sometimes and so when I write and when I speak sometimes I am a little emphatic for the average bond person. And I think that's good. That's the way I wanted to do it.
Gross also expressed gratitude to Janus, noting that "Most people don't get the chance to start over again at seventy years old."

"I want to bring value to clients, and I think that at Janus I can do that."

For those wondering how much value Gross is delivering at Janus, the WSJ looked into his first few months at his new gig and found that he is behind out of the starting gate.

The paper reported that after 11 weeks Janus Unconstrained lags Pimco Total Return by 223 bps. Over that time the Janus fund has grown to $1.4 billion from $12 million.
* * *
Meanwhile, across Newport Beach, Pimco is still seeing fallout from the its recent travails. Reuters reported that shareholders redeemed $5.8 billion from Pimco's emerging market funds so far in 2014. That may not be all Gross' fault as much as Vladimir Putin's fault or Hugo Chavez' (yes the departed may still influence current events).

Finally this week, the WSJ detailed new Pimco CEO Doug Hodge's attempts to "steady" Gross' old shop as markets roiled following Gross' surprise departure. The scene was Pimco's annual holiday party at the Hyatt Regency Huntington Beach. The party, reported the paper, "felt more jovial" with Gross not there.  

Edited by: Sean Hanna, Editor in Chief

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