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Former Outdoorsman, Goldmanite And "Chump" Neil Kashkari Discusses PIMCO's Equity World Domination Strategy
Q: Why is PIMCO expanding into active equities, and why now? PIMCO is continuing this evolution by expanding into The Q: What is PIMCO’s approach to building its equity business? To develop our active equity capabilities, we are recruiting PIMCO’s evolution has been – Last and most important, as PIMCO expands the Q: What are the details of your plan? Q: Where will PIMCO’s equity strategies be managed? Q: Will the active equity business be integrated with the rest of PIMCO? Q: What is your initial equity strategy? Q: Are there active equity strategies you don’t plan to offer? Many investors By Q: Thank you.
Kashkari:
PIMCO’s expansion into active equities is a continuation of a process
of evolution that the firm began several years ago aimed at helping our
clients meet their investment objectives across asset classes and risk
exposures. Equity investing – along with commodities, real estate,
currencies, alternatives and multi-asset offerings – has been a part of
PIMCO’s platform for some time. For example, PIMCO is a pioneer in
portable alpha equity investing, and introduced the StocksPLUS®
portable alpha strategies in 1986, which combine PIMCO’s active
management with equity index overlays. Indeed, PIMCO was recently named
Lipper’s 2009 Large Company Equity Manager of the Year for these
strategies.
active equities for two fundamental reasons: First, we believe we can
harness our expertise in global markets, credit, currencies and risk
management to offer better active equity solutions to our clients.
Second, our clients have told us that they are increasingly looking to
PIMCO as a trusted advisor that provides complete global investment
solutions, rather than merely offering investment products. Among other
things, this means operating throughout the entire capital structure,
asset allocation, and risk factors. Active equities are an important
part of PIMCO being this complete global investment solution.
equity investment management space around the world has become crowded,
and as the strongest economic growth drivers have increasingly shifted
from the developed to the developing markets, investors are looking
globally for attractive investment opportunities. Consequently, many
investors are becoming less focused on traditional “style box,”
benchmark-oriented approaches to equity investing and are instead
looking across geographies, styles and capitalization boundaries in
search of superior risk-adjusted returns. Recent market turmoil has
also reminded all of us that markets don’t grow in a straight line.
More investors now recognize the need for investment strategies that
include risk management and downside mitigation. These trends play to
PIMCO’s strengths: We are a global leader in the investment management
industry, with insights into markets around the world that we can apply
to active equity investing.
Kashkari:
For almost 40 years, PIMCO has focused on preserving and enriching the
investment and retirement assets entrusted to our firm by clients
around the world. Our equity business will be completely aligned with
that mission by adhering to our high standards of investing excellence.
highly experienced equity investment professionals to join PIMCO to
launch and manage a suite of new equity strategies. These people will
also fit with our culture and share PIMCO’s standards of excellence.
While not the fastest way to gain active equity capabilities – for
example, we could have gone the large acquisition route – we have
determined that this is the best approach to maintain “PIMCO quality”
as we expand into new markets, while also maintaining the excellence of
our existing offering to clients.
and will continue to be – measured and deliberate and include hiring
highly talented investment professionals, rather than through large,
costly and potentially distracting acquisitions. This approach is
absolutely critical to preserving our existing strong franchise and
growing seamlessly with PIMCO’s existing investment management
activities.
range of investment solutions that we offer to our clients, we will
continue to adhere to a set of time-tested core values that have
created a strong, vibrant and dynamic culture and organization. This
means that our clients should experience the same standards of
investment management excellence from our equity business that they
have become accustomed to in PIMCO’s fixed income and other investment
activities.
Kashkari:
PIMCO will launch a suite of global equity strategies based on tested
bottom-up equity investment processes that can also benefit from
PIMCO’s insights into global economics and markets. We are seeking
leading equity investors who already incorporate global macroeconomics,
currencies, credit or risk management into their bottom-up valuation
framework. We believe that recruiting highly experienced equity
investors, who are also a strong cultural fit with PIMCO, will help
enable us to achieve our goal of providing strong risk-adjusted returns
to our clients by drawing on these investors’ expertise while also
directly and immediately accessing our other experts around the world.
Kashkari:
Our new active equity strategies will be managed in existing PIMCO
offices around the world. A global equity trading platform will
continuously support all of our equity offerings around the clock, with
London and New York being two of the hubs of the firm’s equity
investing activities.
Kashkari:
Yes, absolutely. Our equity strategies will benefit from PIMCO’s global
resources, knowledge and insights. For example, PIMCO’s equity
portfolio managers participate in our Investment Committee and in our
regular Economic Forums. The benefits are reciprocal: Our equity team
has deep understanding of conditions on the ground in markets around
the world. We fully expect those insights to enhance PIMCO’s fixed
income franchise as well.
Kashkari:
Our first strategy in the PIMCO equity offering will be the PIMCO
Pathfinder™ Strategy, a “go anywhere,” global deep value equity
strategy led by two highly regarded investors with solid track records
and a time-tested expertise, Anne Gudefin and Charles Lahr. PIMCO
Pathfinder Strategy focuses on stocks trading at significant discounts
to their intrinsic value – as an example, we’re looking for securities
trading for 60 cents that we believe are actually worth a dollar. The
fundamental bottom-up analysis of the PIMCO Pathfinder Strategy seeks
to discover these mispriced securities and outperform the broad global
equity markets over the long term, and seeks to do so with lower
volatility.
Kashkari:
Yes. In further building out PIMCO’s equity solutions and capabilities
for our clients, we will focus on quality rather than on scale for
scale’s sake. Our active equity business will be focused on global
strategies from the start, and all of the portfolio managers we recruit
to join PIMCO will help develop globally oriented products; that is we
have no current plans to pursue active single country strategies such
as U.S., U.K. or Japan-only. For clients that seek U.S.-only exposure,
we offer StocksPLUS strategies, which combine PIMCO’s active alpha
management with an equity index overlay.
appropriately ask whether active equity strategies can outperform the
broader equity markets over a long-term investment horizon. We believe
that as U.S. domestic equity markets have become more mature, it has
been harder for active U.S.-only managers to sustain outperformance. In
contrast, our approach is to offer only those products which we believe
can provide clients unique alpha opportunities by combining tested
global bottom-up stock research with PIMCO’s global macroeconomic,
currency, credit and risk management expertise in an effort to produce
sustainable performance in a range of market environments.
applying a global focus in our active equity business, we believe we
will be able to deliver value to our clients by drawing on PIMCO’s
expertise and resources in global markets, which ultimately we believe
will directly contribute to our effort to produce strong long-term,
risk adjusted returns. We do not aspire to offer the full menu of
active equity products; we will only offer those products that we
believe offer unique value for our clients.
How will you preserve the investing style and process of these
investors but also enable them to benefit from PIMCO’s expertise?
Kashkari:
The equity portfolio managers we have hired, and will hire going
forward, already consider the global economic outlook, currencies and
credit as inputs into their existing investment processes. We are not
going to change their basic approach, which has worked for years.
Rather, our focus is on enhancing several of the inputs into their
process. It is a “win-win“ situation. For example, our equity team can
now access experts across PIMCO to better understand economic
conditions in regions around the world as they build their bottom-up
valuation models.
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It was a stroke of PR genius. He turned his pot-smoking mental breakdown into a Kardashian-style magazine puffpiece exclusive and flew off to his new 7 figure job within the week.
for the rest of my life i get to make fun of goldman alumni. sweet.
"Mr. Kashkari, the question is not if you are working hard. The question is, who are you working for." Dennis Kusinich, why you voted for the health care b-ill, I will never understand, but with quotes like this, I will always have love for ya.
Kucinich to Neel Kashkari...Who are you working for?:http://www.youtube.com/watch?v=evpFtFfPWP8
one might ask the same question to mr. kucinich.
Kucinich obliterated his good deed with a bad one.
Score: 0
...one of my favorite quotes from congress, godfatheresque in my book!
but, alas, congressman k chose the road more traveled in the new moscow on the potomac when he voted for obamacare after he got his reacharound from dear leader on air force one...(i called capital hill, aka "the politburo", on the friday before the healthcare vote to speak to kucinich's office...i was put through to his office and no one answered...that is my definition of taxation without representation...)
rip country of my birth, rip...
it is beyond sad that we have to rely on those such as elijah cummings and dennis kucinich - who are beyond ignorant of what is really going on - to challenge the likes of kashkari. one can only laugh at the incredibly weak and futile comments by the likes of barney frank, elijah cummings, dennis kucinich, and pretty much everyone else with the possible exception of ron paul (who is 74 years old).
Kashkari could be the future poster child for how bad the massive fraud within wall street infiltrated the US Government and caused a near-lethal 'infection'. These treasonous acts caused the decline of a nation, bankrupted many honest hard workers and starved many people... all for a few colored pieces of paper printed by the private Federal Reserve central bank or a higher number within their own electronic bank account.
Perhaps Kashkari's next quote will be "Ethics is for other people to worry about."
Elijah Cummings asked Kashkari if the government was the chump. He did not call him a chump. Watch the whole tape.
Happy to see that Kashkari is still on someone's radar, ZH. Cassano, Kashkari, Chris Cox among many others get to hide these days since few care about their primary role in the global debacle, and forget about their stupidity, arrogance, payoffs, and ability to prosper after all the devastation they have caused.
"...PIMCO Pathfinder Strategy focuses on stocks trading at significant discounts to their intrinsic value – as an example, we’re looking for securities trading for 60 cents that we believe are actually worth a dollar."
Lemme see if I get it, douchebag, you're going to buy stocks that are trading at 40% discount to their par value?
"PIMCO thought it a great idea to get into the equities business when we realized (belatedly, perhaps) that Ben's printer has a pipeline connected to the major indices and all of their junk components. We didn't get enough "gravy" when Bernanke bailed US out with his QE1 game, so, we figured this was an excellent way to get a hold of more printed cash. I, obviously, am the guy for the job"
Kashkari looked depressed at his cabin, swinging his axe and waxing about how the economy and the bailouts were nebulous and hard to get a hold of - in comparison to the certainty of chopping wood (presumably).
People are mostly not judged by intension (ie the guy is a nice guy at heart, and he was only doing the bidding for people like Paulson) but also by outcomes of their actions. In fact, I can have no intension to kill but if I do it is manslaughter and I am still responsible.
By outcome the MASSIVE THEFT OF CASH BY BANKS AND INDEBTING OF THE PUBLIC is one of the great crimes of the century. Kashkari YOU ARE THE FRONT MAN FOR CRIMINAL ACTIONS AGAINST THE PEOPLE.