After the shocking and sudden departure of Bill Gross from Pimco, the hedge fund he founded 30 years ago, a few days before he was going to be fired, the new CEO Douglas Hodge told Reuters that he plans to “absolutely grow” its exposure to equities, but there will be “no difference” in the way the fund is managed post-Gross.
The new Pimco Chief Investment Officer, Dan Ivascyn, told CNBC, “At least for the coming weeks, and even for the next couple of months, expect us to be very comfortable and only make incremental changes in client accounts.” Ivascyn said the firm would keep its “New Neutral” thesis, anticipating bonds to stay low. The 10 year Treasury offers reasonable value, he said, and will likely reach 3% over the next few years. He also expects the U.S. dollar to remain strong against most international currencies.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
While Gross was the animus behind Pimco for decades, Hodge said it was moving beyond a founder-led model and that Gross’ flagship Total Return Fund “does not define Pimco.”
When Gross founded the fund in 1987, there were $222 billion assets under management. At the time of his departure, the figure reached $2 trillion.
