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Presenting The Holdings Of Pimco's $240 Billion Flagship Total Return Fund
In light of Mr. Gross' earlier very humanitarian letter, we decided it would be sensible to demonstrate the holdings of PIMCO's flagship Total Return Fund (all 249 pages thereof) which at last check were just under $240 billion, and had a 4.92 effective duration. Setting aside Mr. Gross concerns for the broader society, we looked at what the suggested 300-400 bps adverse impact on just the the TRF's P&L would be: taking the $240 billion notional, and applying a 350 bps average hit to the fund's effective duration implies a hit of just over 17%, or a loss of about $40 billion. Assuming a comparable duration for Pimco's remaining $800 billion in AUM held in other vehicles, and one can see why Mr. Gross would be concerned about losing government backstops. We believe Mr. Gross may have forgotten to mention this slight tidbit from his letter.
And for those who enjoy digging through letter appendices, oddly excluded in this case, here is the full breakdown of the TRF holdings.
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Gross is just another self-absorbed and self-interested prick like Buffett and Gates. Its never enough.
"How many yachts can you waterski behind, Gordon?"
bubble bitchez!!
TBT Jan 2011 calls, bitchez!
Could you just hear the load scream when his nipples get ripped off the minute the Fed says "screw it, no more QE".....
Gross is as self serving as anyone else on wall st. He talks his book. The game never changes. Remember back in 2008 he was on CNBS begging congress to pass TARP? He was loaded to the gills back then with agency debt and still is but has reduced his holdings. The day people like this finish dumping all their "non performing marked to fantasy debt" is the day when we shall have a crash....until then "its all good and green shoots".
Sounds like Gross is jockeying for a position in either the governement or on the Fed's board.
"We must keep this fractured, bust-ass system running! SEND MOAR MONIES NAO, PLZ?!"
What an asshole.
I can has tackses?
So, I herd u liek tackses?
YTD he is up 6.5% or so. At a cost of 47bps he puts a lot of HF's to shame. They should close this fund though, nothing good can come from getting this big.
If you think he is good, consider how much Federal Reserve Capital LLC is up YTD.
This "junk" option is the shit. Middle school drop-outs get to junk phd's with no recourse.
Unfortunately investing in the Federal Reserve Capital LLC is not an option in my 401k, making PTTRX the shit.
...too bad. You're missing an opportunity to spread into ALL asset classes. Plus some that are yet to be invented .
Actually, PTR is up 8.93% YTD in total return as of last night.
I am actually thinking about parking my money in some pimco funds. the return isn't that bad, and I think it's pretty safe.
All my other stocks are performing B A D. It's like I'm losing 1K a hour these last few days...
you are long only?
Will anyone of any public prominence in this country have the character and honor to say: "it's all over, the game is up and we need to start to come to terms with this reality as peaceably as possible" or will they all, like Gross try their best to kick the can down the rapidly ending road, one more time?
How people like Gross act in the next 6-12 months or so will probably be the only thing that really maters for their legacies and for future generations.
someone of prominence may, but probably not until they have cashed completely out and relocated to New Zealand or the Caymans or somewhere.
Sorry. Speaking as a Kiwi, no we don't want them here.
...because their horizon is "now"... his best-ex is gov't subsidy... frankly, its only execution he's ever had... so when it ends the whole world changes and he'll take his billions and hide... which is the way it always ends...
No no you have it all wrong. He really does care about society.
See, if the wheels come of in any serious way he'll just have to spend most of his gains buying private armies and securing his vast land holdings against wandering mobs of half-starved citizenry.
He would much rather that things not fall into ruin; he gets to keep his winnings that much longer and doesn't have to put up a bunch of unsightly concertina wire.
The American taxpayer is funding the Gross gains. He wins we lose. It's truly discouaging.
Should the American taxpayer be paying Federal income tax ?
http://www.imdb.com/title/tt0772153/
Exactly why I bailed on the PTR fund in my 401k Friday. Strictly fixed for me for a while. I might miss a few pennies, but Treasuries are not fundamentally the place for security anymore. The PTR fund is going to blow-up sooner or later, as Gross is in big on government backstopped Fannie and Freddie crap. I even stopped flipping 28-day bills in my TD account, the rates are so horrid. Not worth risking a thousand bucks to get 10 cents anymore, or five thousand for 50 cents, if you are lucky. Embarrassing.
British political circles are buzzing with excitement due to rumours of a huge political/economic story breaking in the next couple of hours. Certain media outlets are being briefed now.
Just been informed it is breaking at midnight GMT.
WTF - you don't get your pudding if you don't eat your meat. Finish your thought please and thank you.
Return of Brigadoon?
UK to default ? Cameron and Clegg been caught enjoying working together a little too much ? Or maybe Prince Charles will finally get his turn on the throne, as the Queen trips over a corgi ?
Thats all we need, goddamn tree hugging hippy that he is. Midnight. Bring it on.
I hope it's option number two.
Cameron's had 100 days now, and we haven't had a Conservative sex scandal. We are overdue already.
Yes, those were the days. Do you remember this one?
Forty-five year old Milligan was found dead in Hammersmith, London.[2] The discovery of his corpse in what was presumed to be a state of autoerotic asphyxiation, combined with self-bondage and cross-dressing, led to a greater public awareness of auto-erotic asphyxiation and self-bondage and their risks. A bizarre detail of his death, which was the subject of much comment and speculation at the time, was that he was found to have had an orange segment in his mouth at the time of his death.
http://www.independent.co.uk/news/uk/mp-was-worried-over-tarnished-television-image-coroner-records-misadventure-verdict-on-milligan-1430950.html
An absolute classic. That was pretty much the end of any pretence I had about taking politicians seriously. A long and honourable tradition...
But, as Stephanie Merritt points out in her review of the book City of Sin in today’s Observer, our modern MPs simply can’t compete with some of their forebears.
Sedley went on to become Speaker of the Commons.
Brilliant - Milligan was clearly an amateur when compared to Sir Charles.
P.S. A Dismal Scientist would be welcome to join the debate here - http://blogs.telegraph.co.uk/news/jamesdelingpole/100050792/why-conservatives-shouldnt-believe-in-man-made-climate-change/
Thanks for the suggestion. The comments section reminds me of ZH in its scathing view on certain contributors ;-)
I think this was what they were talking about - http://www.guardian.co.uk/uk/2010/aug/25/poor-families-bear-brunt-of-austerity-drive
Yet another contender for the 'No Sh*t Sherlock' prize.
Is that all? Blimey. I was hoping it wasn't going to be the downgrade of Ireland (same prize applies). Oh well, glad I didn't stay up specifically for this - it does demonstrate what counts as 'important' if you're a politician (of any stripe).
I'm just glad this fucking market showed its true colors into the close and finished down 135. The intraday support BS provided by the PPT makes me want to hurl but I'm glad to see the finish looks about right, off 1.3%.
The housing data was really bad. The home-as-ATM-and-retirement-fund model just broke for real, no going back now. We've got another 25-50% of notional value in housing to shed before anything starts to look in the market.
People that were sitting on homes not sure what to do will just walk. Or run. Give them a few months, you'll see.
Market down 1.3%. Meaningless as cherry blossoms.
...at least cherry blossums are pretty...
Pimco serves a s a perfect example of what is wrong with the current securities system....
Pimco is so large that it affects government policies....
This is just the opposite of what is needed in the marketplace....
.................................
The market has something now....that it did not used to have....the BATS model exchange....
For less than 20 cents per 100 units....a RETAIL account can transact....it does not matter what the units are....
The marketplace neeeds to be revamped for RETAIL worldwide....
What would make for a better marketplace....a handful of PIMCOs....or 2 BILLION RETAIL accounts pressing their own computer buttons....Units of whatever the security should be available such that any RETAIL account can study wiki fact based information....and do their own transactions....
The investment world has changed....amd an American should be just as comfortable buying a foreign company as a domestic company....
The exchanges should be defragged....and RETAIL based....not "PIMCO" based....
...+1000...
Pimco serves as a perfect example of what is wrong with the current securities system....
Pimco is so large that it affects government policies....
This is just the opposite of what is needed in the marketplace....
.................................
The market has something now....that it did not used to have....the BATS model exchange....
For less than 20 cents per 100 units....a RETAIL account can transact....it does not matter what the units are....
The marketplace needs to be revamped for RETAIL worldwide....
What would make for a better marketplace....a handful of PIMCOs....or 2 BILLION RETAIL accounts pressing their own computer buttons....Units of whatever the security should be available such that any RETAIL account can study wiki fact based information....and do their own transactions....
The investment world has changed....amd an American should be just as comfortable buying a foreign company as a domestic company....
The exchanges should be defragged....and RETAIL based....not "PIMCO" based....
Reading the last 2 articles about Pimco has left a bad image in my brain. All I can see is Bill sporting nothing but a skimpy apron and serving up poolside drinks at his Cali Mansion to Barney Frank and Ben Bernanke wearing nothing but g strings.
First post here:
I have some money parked in this fund in my 401k A/c for the last 6 months. Its a plain pure defensive position. And the principal preservation alternatives available to be defensive in that a/c are not that great.
I could sell TRF and switch money into stock funds. But 40bill haircut on 240bill is roughly a 16.67 percent decline. I see a bigger haircut in the stock markets and by extension the stock funds that i could buy into.
On top of that d-bags like Gross seem to get whatever they beg for. So would it still be wise to hold onto TRF ? Anything I am missing here ?
My best advice for you is to NOT pay any attention to anyone named Leo, Johnny or Biggs.
LOL!
Nor anyone wearing a cowl. It's a TARP!
Welcome aboard the wild ride down the rabbit hole.
Most requests for specific investment advice don't really get responded to. Too many personal factors for people to give investment advice.
Best of luck!
Time to get out of that thing. I am all for chasing yield but what up with all the Illinois and Cal muni's. Looks like one big turd bomb waiting to blow up.
As someone who has a sizable sum in a 401K that I cannot get out unless I terminate employment or turn 59-1/2, it is hard to read ZH every day and realize just how screwed I am. The 401K plan offers the typical smorgasbord of money market, stock and bond funds (including PIMCO) but i) the stock market is rigged and facing a Hindenburg Omen meltdown, so don't put the money in stocks, and ii) bonds are in an historic bubble and/or are going to become worthless once investors finally catch on that there's no way they can be paid, or realize that the game is up and start a cascading meltdown. I am left to play the market timing game and hope I get it right in hopping from one spot to another. I suppose I could put the money in stocks with the philosophical view that I can lose 40% - 50% anyway and still be in the same position I would have been in had I taken the money after taxes instead of putting it in the 401K and at least it won't all disappear, but being trapped in a 401K is just horrible. At least my plan offers some international stock funds. My wife's are all domestic funds. I've scanned a lot of these plans now and its amazing how all the investment "choices" are essentially the same, and the "safest" haven that any of them have to offer are Treasuries. This money is freaking doomed.
TGrac: Borrow against your 401K and don't pay it back...or in other words yourself back... They (govt) are going to confiscate your 401k anyway but at least this way they will confiscate your debt and not your money...
Thanks, but max limit on borrowing under my plan is 50k. After I fail to pay it back and it is treated as a prohibited distribution, I pay taxes plus the 10% penalty, I'd be luck to have 25k left. It's something, but not a helluva lot of consolation.
By the way, it is bitter humor to realize that the interest rate they charge on borrowing money from yourself is waaay higher than the amount that any bank is willing to pay or any amount you can make on Treasuries. In other words, I have to provide a higher rate of return on my own retirement funds to myself than any bank CD, Treasury bill or bond or the S&P 500 is currently providing.
All part of the screw-fest.
Disagree with the analysis. Only 20% of PTTRX is in Mortgages. Rest is in straight treasuries/corporates. Applying the 17% markdown to the mortgages implies a 3.4% performance drag on the fund- hardly that devastating, especially given that money will flow to treasuries and drive up the prices there. And btw- the average fund has 30% in mortgages, so PIMCO is actually underweight that sector.
Of course.. this is deflation that one day will destroy that GSE pile of crap- with or without Govt guarantees.
SHOCKING....
gross is just another elitist wall street asshole benifiting from the handouts from the bank controlled government...
sarcasm on now - "im sure his concerns were altruistically based...."
I see you riding round town with the ZIRP that I love, and I say F**k You and a F**k the Fed too!
http://www.youtube.com/watch?v=CAV0XrbEwNc
soon the treasury will have to worry more about gross selling than china selling.
...ummmm... which is why Tim treats Bill like an appendage...
Sorry if I am missing the obvious but am I correct in reading that they are 800 bn long on an amazing list of securities and 500 bn short through financial futures ?!
Gross hasn't been on CNBC in 10 minutes ... where's a narcissist when you need one ????
p. 199, 25M Long California 10y CDS...on 12/31/09 that position was 64M notional, four contracts at premiums of 1.6 to 1.75, all were out of the money...maturities of 12/20/18
Assuming they unwound all four of those and put 25M back on...the .61 premium (coupon) doesn't make any sense.
The beauty of a monster this size I suppose...last couple pages are cool...p248, 1.86B out on 1M repo at 2bps, 1.83B 1M at 1bp!
Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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