Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Bill Gross’ Oil Exposure Mars his Rookie Quarter at Janus

Bill Gross’ Unconstrained Bond Fund returned just 0.56% in the recent quarter, compared to more than double that amount at PIMCO’s Total Return Fund

Bill Gross

After Bill Gross’ well-publicized exodus from Pimco, he has seen losses at Janus with his Unconstrained Bond Fund, due mainly to the fall in fuel prices and weakness in Russia and Brazil, according to Marketwatch.

The loss is particularly wounding for Gross, since his move to Janus, to avoid being sacked at Pimco, should have been redemptive (but without massive redemptions of investors). Instead, the Unconstrained Bond Fund, of which Gross and his family owns 51%, returned 0.56% while Pimco Total Return Fund, which Gross once managed, rose 1.32%

The main cause of the shortfall was the unexpected 42% drop in oil prices. Gross wasn’t the only one who made a losing bet on oil; hedge fund manager John Paulson also lost a significant amount on trying to catch a bottom in fossil fuels. Gross’ fund had 5% invested in Brazilian and Russian Energy funds. Janus said, according to ibitimes, “The energy sector exposure detracted the most from the fund’s performance. Its exposure to U.S. dollar denominated Russian and Brazilian corporate bonds also detracted.” Janus added that the long-term outlook for equities was 4% to 5% for equities and 2% to 3% for bonds.

The fund was also hurt by credit default swaps with exposure to sovereign debt in Mexico, China, Russia and Brazil.

Click to comment

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement