PIMCO: Bill Gross (Co-founder & CIO) & Mohamed El-Erian (Co-CIO)
[EDITOR’S UPDATE: On January 12, 2015, Bill Gross revealed in an interview with Bloomberg View’s Barry Ritholtz that he was actually fired from PIMCO.]
It may just be us, but something is not quite right when investors pull out $68 billion in 16 months. This deluge could be due to the fact that both Bill Gross and Mohamed El-Erian left PIMCO, America’s largest bondholder. Bill Gross, aka “The Bond King,” built PIMCO from scratch into the $2 trillion mutual fund it is today. Gross personally managed the $168 billion PIMCO Total Return Fund, which outperformed 96 percent of its peers over the last 15 years. When he left, $60.5 billion flowed out of the fund.
Another wrench was thrown at PIMCO when Mohamed El-Erian decided to leave. El-Erian was in charge of the day-to-day operations at PIMCO and was largely seen as PIMCO’s ambassador, as a result of the numerous newspaper editorials he wrote, his various TV appearances, and his travels all around the world for PIMCO. PIMCO must now attempt to stop the bleeding caused by the outflow of investments by assuring investors that their historic returns will still follow, even after the departure of Bill Gross and Mohamed El-Erian.