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So if you don't know who Bill Gross is: https://en.wikipedia.org/wiki/Bill_Gross https://en.wikipedia.org/wiki/Bill_Gross He's been called the bond king and h

So if you don't know who Bill Gross is: https://en.wikipedia.org/wiki/Bill_Gross https://en.wikipedia.org/wiki/Bill_Gross He's been called the bond king and his old firm PIMCO was at one point the biggest bond trading firm in the world. Over the past 5 years PIMCO's sold volatility to the rest of hte world. He was booted out of PIMCO a couple of years ago and he's had a really tough time getting his new fund at Janus going. As you'll see from the PDF, he's a very eloquent writer and is always on TV as a markets expert. Just keep in mind when reading that everyone who runs a fund is always talking their own book when they talk in public. He might be right with his pessimism but keep in mind that before he released this he has almost certainly put on a position that will be benefited by people reading his work and believing him.

mathattack 11y ago
Just keep in mind when reading that everyone who runs a fund is always talking their own book when they talk in public. He might be right with his pessimism but keep in mind that before he released this he has almost certainly put on a position that will be benefited by people reading his work and believing him. Yes - he has two goals... The more people who pile in to his investments, the better the returns look. (Until everyone piles out at the same time) Also, he gets paid on Assets Under Management, so these documents are marketing to get more money to invest.
- stocktech 11y ago
  >The more people who pile in to his investments, the better the returns look That's not how it works.
  - michaelt 11y ago
    If you have a fund investing in foo, and you attract enough investors that demand for foo increases the price by 10%, your fund posts a 10% return. Of course, if all your investors tried to realise those gains by selling their investments, the price of foo would drop again.
    - stocktech 11y ago
      Are you arguing that investors will sidestep Bill and invest directly in the bonds? If that was the case, I don't know how PIMCO manages trillions. The reality is that he wants to attract investors to his fund. Obviously, accounting doesn't include that in his returns.
      - mathattack 11y ago
        It's both. He wants people to invest in Janus, and he wants other large money managers to copy his idea with a slight lag. (Drive up the price of his positions after he's in, and leave slightly after he gets out)
zekevermillion 11y ago
He may be right eventually. Unfortunately his timing has not been good, of late.
forgetsusername 11y ago
>He's been called the bond king Smart, insightful guy that was "lucky" to oversee a large bond fund during the biggest bond bull run...ever(?) from the 80s onward.
- jpadkins 11y ago
  He outperformed the other bond fund managers.

mathattack 11y ago

Just keep in mind when reading that everyone who runs a fund is always talking their own book when they talk in public. He might be right with his pessimism but keep in mind that before he released this he has almost certainly put on a position that will be benefited by people reading his work and believing him. Yes - he has two goals... The more people who pile in to his investments, the better the returns look. (Until everyone piles out at the same time) Also, he gets paid on Assets Under Management, so these documents are marketing to get more money to invest.

stocktech 11y ago
>The more people who pile in to his investments, the better the returns look That's not how it works.
- michaelt 11y ago
  If you have a fund investing in foo, and you attract enough investors that demand for foo increases the price by 10%, your fund posts a 10% return. Of course, if all your investors tried to realise those gains by selling their investments, the price of foo would drop again.
  - stocktech 11y ago
    Are you arguing that investors will sidestep Bill and invest directly in the bonds? If that was the case, I don't know how PIMCO manages trillions. The reality is that he wants to attract investors to his fund. Obviously, accounting doesn't include that in his returns.
    - mathattack 11y ago
      It's both. He wants people to invest in Janus, and he wants other large money managers to copy his idea with a slight lag. (Drive up the price of his positions after he's in, and leave slightly after he gets out)

zekevermillion 11y ago

He may be right eventually. Unfortunately his timing has not been good, of late.

forgetsusername 11y ago

>He's been called the bond king Smart, insightful guy that was "lucky" to oversee a large bond fund during the biggest bond bull run...ever(?) from the 80s onward.

jpadkins 11y ago
He outperformed the other bond fund managers.