‘You Can’t Fire Me, I Quit’ – PIMCO Was Preparing To Fire Its Founder Bill Gross

“You Can’t Fire Me, I Quit” – PIMCO Was Preparing To Fire Gross (ZeroHedge, Sep 26, 2014):

With more than $65 billion pulled from PIMCO’s funds since May 2013, Bill Gross’ firm had been struggling amid spotty performance and it seems, according to The Wall Street Journal, PIMCO (not Allianz) was set to fire the 70-year old bond king this weekend. It seems clear that Mr. Gross move was pre-emptive as sources cite his “increasingly erratic behavior” and ultimatums as factors in the move. Assumptions about Mohamed El-Erian returning to run the company have been denied. Some have estimated PIMCO could see a further 10-30% in fund outflows on the back of Mr. Gross’ departure.

As The Wall Street Journal reports,

Pimco has suffered recently as Mr. Gross has seen investors pull more than $65 billion from his fund since May 2013 amid spotty performance.

Pacific Investment Management Co. was going to fire its founder, Bill Gross, before he announced his Friday resignation, people familiar with the matter said. Pimco said it would announce a new portfolio-management structure later Friday, those people said.

Allianz commented… “While we are grateful for everything Bill contributed to building our firm and delivering value to Pimco’s clients, over the course of this year it became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take Pimco forward.”

In a separate, joint statement July 7, members of the executive committee said it never took up the matter of Mr. Gross leaving. The committee called Mr. Gross a “vital leader” and “an extraordinary asset for our clients.”

Fund outflows to continue… (via Bloomberg)

Gross’s exit shows Allianz not best Pimco owner, too late now for Allianz to do IPO of Pimco and asset outflows of 10%-30% possible, Bernstein says in note after Bill Gross announces move to Janus Capital.

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1 thought on “‘You Can’t Fire Me, I Quit’ – PIMCO Was Preparing To Fire Its Founder Bill Gross”

  1. El Erian won’t be named to replace Bill Gross…….no kidding. They often had both of them on Bloomberg before it became a sales avenue for gadgets, especially Apple products. I no longer watch Bloomberg, it has become another financial shill, not business. El Erian is not a good guy to put in front of the cameras………..
    Selloffs have been going on using High Frequency trades in the market for some years. I call them skim and sell. The US is no longer considered a good investment, money is flowing east, not west.
    The US needs to clean up their financial act. Until they do, it will only get worse. So far, the only act that continues is corruption in our highest areas of government. No truth, no credibility no trust.


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