5 ms·
>The more people who pile in to his investments, the better the returns look That's not how it works.
by 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 agoIf 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 agoAre 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 agoIt'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)