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Kashkari Resigns Amid 'Spotty' Fund Performance, Heads Back To Public Office

Tyler Durden's picture




 

The ex-back of the envelope TARP calculation "chump" become wood-chopper, turned equity portfolio manager has gone full circle and decided his time is better spent serving the public good once again. As the WSJ reports, Neel Kashkari is considering running for office in California. The napkin-laden chrome-dome has seen his funds suffer from spotty performance since their launch - all underperforming the benchmarks. We can't help but think the timing of his announcement odd given his love affair with Apple and tonight's collapse but that would be harsh judgment on the always self-denigrating 39 year-old. Of course, we will hear the impressive nature of him leaving a well-paid job to run for office as his patriotism runs wild; we are less 'believer'. Still, managing to have your name turned into a noun and a verb is no easy task...

kashkari: kash-kar-ee

noun:
1. a calculating device undersuited for anything beyond simple addition - typically a Blackberry;
2. a Wild-assed Guess (WAG)
3. slightly better than a cocktail napkin
4. a Blackberry

verb:
1. to pull a number out of one's ass, typically using a Blackberry calculator function;
2. to make a Wild-assed Guess (WAG)

 

Via WSJ:

Neel Kashkari, who oversaw the U.S. Treasury's much-maligned Troubled Asset Relief Program during the financial crisis, said he is leaving Pacific Investment Management Co. to consider running for public office in Democrat-heavy California as a Republican.

 

"As I look at California, there are huge problems," said Mr. Kashkari in an interview, pointing to the state's long-term budget troubles, weak job market and problem-plagued public schools. "These challenges are huge but they're of our own making—so they are within our capacity to solve," he said.

 

Mr. Kashkari was hired by Pimco in 2009 to help turn the big bond-fund company into a player in equity funds. Since then, the unit of Allianz has launched six new stock mutual funds.

 

Building an equity portfolio has been slow going. The six funds had about $3.6 billion from U.S. investors, according to research firm Morningstar, and $10 billion in all, according to Pimco, including money from institutions and foreigners that Morningstar doesn't tally. That is less than 1% of the $1.9 trillion that Pimco manages.

 

The performance of funds that Mr. Kashkari launched has been spotty. All six funds lagged behind benchmarks assigned by Morningstar in 2012, using the institutional class of shares as the metric. Mr. Kashkari said that the funds were designed to limit downside risk and, as a result, tend to lag when the market is rising.

 

Mr. Kashkari, 39 years old, didn't specify which political office he is eyeing. But with no contests for U.S. Senate seats from California until Democratic Sen. Barbara Boxer's term expires in 2016, the next high-profile statewide will be the governor's post. Gov. Jerry Brown, 74, a Democrat, hasn't said whether he plans to run again in 2014; a spokesman for the governor reiterated that Mr. Brown hasn't made any "pronouncements" on that.

 

A Republican would face an uphill battle for a statewide seat in California, where every statewide office is held by a Democrat and GOP registration has been shrinking as the state's population becomes younger and more ethnically diverse. In 2010, Meg Whitman, former chief executive of eBay Inc. and now chief executive of Hewlett-Packard Co., HPQ -1.39% ran for governor as a Republican against Mr. Brown. She spent more of her own money than any candidate in U.S. history and ended with only 41% of vote.

 

"I'm not the typical California Republican. I'm the son of immigrants," Mr. Kashkari said. "I come from modest upbringing. I have a successful track record. I'm an optimist. And I think something can be done if people work together." He said he plans to seek advice from California Republicans and Democrats before making any decisions, but already has launched a campaign-style website at www.neelkashkari.com.

 

With his shaved head and cool demeanor under cross-examination at televised hearings, Mr. Kashkari became the public face of TARP, the $700 billion bank bailout launched during the George W. Bush presidency and continued in the post during the first several months of the Obama administration.

 

The Treasury said Wednesday that it has recovered $387 billion, or nearly 93%, of the funds actually disbursed for TARP.

 

"Obviously TARP is very unpopular," Mr. Kashkari said. "But it's the best example we have in modern history of Democrats and Republicans coming together to do something controversial but absolutely necessary and absolutely successful... Both Sacramento and Washington, D.C., have a lot of politicians who want to do the easy things which'll make them popular. We're out of easy things to do."

 

A native of Akron, Ohio, Mr. Kashkari moved to California in 1997 as an aerospace engineer and later, after earning an M.B.A., worked there for Goldman Sachs GS -0.27% & Co. He moved to Washington to work at the Treasury in 2006 after Henry Paulson, who had been Goldman's co-chief executive, became Treasury secretary.

 

Pimco, based in Newport Beach, Calif., manages the world's largest bond fund, Pimco Total Return, which has assets of $285 billion.

 

The six funds that Mr. Kashkari's 55-employee unit manages are Pimco EqS Pathfinder Fund, Pimco Eqs Emerging Markets Fund, Pimco Eqs Dividend Fund, Pimco Eqs Long/Short Fund, Pimco Emerging Multi Asset Fund and Pimco Dividend and Income Builder. Pimco's stock funds have been drawing new money, despite investors' shift away from actively managed stock funds. They had net inflows of $316.5 million in the U.S. in 2012, according to Morningstar.

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Wed, 01/23/2013 - 20:05 | 3181199 Aurora Ex Machina
Aurora Ex Machina's picture

Which action films has he been in?

 

Bollywood is big business, so don't snark on the ethnic angle, either.

Wed, 01/23/2013 - 20:08 | 3181209 nope-1004
nope-1004's picture

Every time I saw him on TV, he talked like a politician.  He's full of shit, and his performance shows it.  My bet is that he's eyeing public office because he sees corruption and easy money.  If you can't make it legitimately, get in with the boyz club!

Bill said: "You can't quit, you're fired"

 

Wed, 01/23/2013 - 20:14 | 3181238 caconhma
caconhma's picture
REPATRIATION AVALANCHE GAINING MOMENTUM: AZERBAIJAN TO WITHDRAW ALL GOLD FROM JP MORGAN VAULTS

JANUARY 21, 2013

 Baku, Fineko/abc.az. The State Oil Fund of Azerbaijan (SOFAZ) has placed today the first ton of physical gold in the safety vaults of the Central Bank in Baku, purchased at the London Stock Exchange of Precious Metals (LBMA) within the SOFAZ investment policy.

According to the Fund, today British company Brink’s Global Services delivered from London to Baku and placed 1 ton (32,150 ounces) of gold owned by SOFAZ in the CBA vaults.

The Oil Fund has been acquiring physical gold since February 2012 in batches of 10,000 ounces a week. By early 2013 SOFAZ brought its gold assets up to 14,934 kg (480,146 ounces).

Initially London-based warehousing units of JP Morgan were selected for storage, but now all the gold will be gradually transferred to storage in Azerbaijan. Prior to the completion of construction of a new residence of SOFAZ this gold will be stored in the CBA vaults, and then will be transferred to the Fund’s own store in its residence at Heydar Aliyev Avenue in Baku.

SOFAZ investment policy allows it to keep in gold up to 5% of assets.

 

http://www.silverdoctors.com/repatriation-avalanche-gaining-momentum-azerbaijan-to-withdraw-all-gold-from-jp-morgan-vaults/

 

Wed, 01/23/2013 - 20:24 | 3181272 Richard Chesler
Richard Chesler's picture

Those who can't do, steal.

 

Wed, 01/23/2013 - 20:31 | 3181290 Zer0head
Zer0head's picture

respectfully I think the point is being missed

Billy and Mo extracted what they needed, used what connections he had and now are disposing of thim

Wed, 01/23/2013 - 21:12 | 3181354 knukles
knukles's picture

Kinda thought that this would happen... something like it.
Look, he was a VP at Goldman.
Everybody at GS and on the street is a VP... Big fucking deal.
Was a gopher for Paulson.
Visible, but the gopher.
So having dealt out the TARP funds, somebody had to take him for a while.... revolving door.  And GS didn't want him back, they got tons of peons.
So, since PIMCO was on the Dealer Advisory Whatever at the Fed, so they drew the short straw to have the Gopher come set up an equity management operation in which he had ZERO experience.
BFD

Thu, 01/24/2013 - 05:14 | 3182034 Bananamerican
Bananamerican's picture

Fuck that wood choppin' Genie

Thu, 01/24/2013 - 10:20 | 3182323 Sylvia Plath
Sylvia Plath's picture

FINALLY!!!!

 

It was about time! I wonder what Bill Gross was smoking!

Thu, 01/24/2013 - 10:46 | 3182422 Sylvia Plath
Sylvia Plath's picture

FINALLY!!!!

 

It was about time! I wonder what Bill Gross was smoking!

Wed, 01/23/2013 - 22:15 | 3181542 hooligan2009
hooligan2009's picture

hmmm...got a map of the facility? i think i hear a few thousand spartaci wishing to complete a black ops mission!

Wed, 01/23/2013 - 22:19 | 3181552 Buck Johnson
Buck Johnson's picture

Not only did Cash Carry fund underperform, it was heavy long on apple and so they are really getting slammed right now.

Wed, 01/23/2013 - 22:26 | 3181571 zorba THE GREEK
zorba THE GREEK's picture

Oh crap, I only clicked on because I thought this was about a 

Kardashian, sorry, carry on.

Wed, 01/23/2013 - 20:13 | 3181221 ACP
ACP's picture

He can be the Hindu Telly Savalas.

"We got the biggest jumbo shrimp in Vegas. You too can get the VIP treatment!"

Edit: He's gotta build a better rep before getting his no-show job like fish-lips Greenspunk.

Wed, 01/23/2013 - 20:14 | 3181229 Aurora Ex Machina
Aurora Ex Machina's picture

Dammit, you missed the films!

 

Knock yourself out.

Wed, 01/23/2013 - 20:59 | 3181347 ACP
ACP's picture

The ridiculousness is pretty funny!

Wed, 01/23/2013 - 21:39 | 3181454 Aurora Ex Machina
Aurora Ex Machina's picture

Hey, it matched his ambitions...

 

(note to self: post fully, or not before committing and  - ZH has never met Bollywood! Much amusement to follow)

Wed, 01/23/2013 - 22:02 | 3181514 Remington IV
Remington IV's picture

Hank Paulson needs a golf caddy

Wed, 01/23/2013 - 22:49 | 3181613 philipat
philipat's picture

Back to what he does best for the boys: Cash-carry??

Thu, 01/24/2013 - 00:34 | 3181796 H E D G E H O G
H E D G E H O G's picture

Looks like some of those "KASH & KARI" folks up around the Cleveland/Detroit area running all the gas stations, stop & robs, and lottery joints.

Thu, 01/24/2013 - 07:51 | 3182097 MillionDollarBoner_
MillionDollarBoner_'s picture

Every time I have seen this guy he has looked stoned.

Its the bright, shining eyes, I think.

Dude always looks wasted, man...

Wed, 01/23/2013 - 20:04 | 3181200 km4
km4's picture

You mean Neel 'Cash and Carry ' Kashkari 

Wed, 01/23/2013 - 20:18 | 3181251 Arrowflinger
Arrowflinger's picture

This financial crisis proves GOD has a sense of humor.......

 

Madeoff "made off" with billions in a Ponzi scheme

KashKari - "carried cash" to the TARP banks

MF Global - well those initials need no explanation

Ash - Incinerated Florida's pension system

There are more, but they escape me for the moment....

Wed, 01/23/2013 - 21:06 | 3181361 Drachma
Drachma's picture

Funny how, I mean funny like I'm a clown, I amuse you? I make you laugh, I'm here to fuckin' amuse you? What do you mean funny, funny how? How am I funny?

Thu, 01/24/2013 - 00:39 | 3181808 H E D G E H O G
H E D G E H O G's picture

how bout: "just took a Bernanke, gettin ready to wipe my Geitner with some Corzine"            

Wed, 01/23/2013 - 20:06 | 3181205 Yen Cross
Yen Cross's picture

 Ride The CalPers ship into Mavericks you Bitch!

Wed, 01/23/2013 - 20:07 | 3181208 surf0766
surf0766's picture

It was not so long ago when the b-cups would drool all over him. Oh how time flies.

Wed, 01/23/2013 - 20:08 | 3181216 waterhorse
waterhorse's picture

"Neel Kashkari is considering running for office in California."

I hope he stays out of California.  However, it would be funny if he spent 51 million like Meg Whitman and LOST.

Wed, 01/23/2013 - 20:25 | 3181268 tickhound
tickhound's picture

"I don't think anyone questions, Mr. Kashkari, that you're working hard.  Our question is... just go fuck yourself"

Wed, 01/23/2013 - 20:11 | 3181222 waterhorse
waterhorse's picture

"The Treasury said Wednesday that it has recovered $387 billion, or nearly 93%, of the funds actually disbursed for TARP."

Uh-huh, SURE it was paid back.  Paid back with OTHER bankster giveaways courtesy of the Federal Reserve.

Wed, 01/23/2013 - 20:11 | 3181223 pdtrader
pdtrader's picture

2 Words.

Oh. Fuck.

Wed, 01/23/2013 - 20:12 | 3181225 q99x2
q99x2's picture

He'd be a great politician. He's already lying about his age. Either that or he drinks drano for breakfast.

Maybe he speaks Greek and can get California loans from Germany.

Wed, 01/23/2013 - 20:15 | 3181235 ebworthen
ebworthen's picture

Hey!

It's old Neel "Cash'n-Carry"!

Didn't he and Timmy and Paulson help funnel taxpayer money to the TBTF banks and justify it with some equivocatory Orwellian doublespeak and ethical fudge making?

Public office?

Oh great; Jamie Dimon and Brian Moynihan must be licking their lips.

Aladdin will come out of his lamp and grant them more wishes again.

Wed, 01/23/2013 - 20:14 | 3181236 hooligan2009
hooligan2009's picture

ha ha ha ha ha ha...thanks ZH...made my day...a treasury official who can't make money insider trading us treasury news in global stock markets and multi-asset funds...ha ha ha ha...PIMCO must have sorer asses than red assed baboons!!...and he is going back to public office...ha ha ha ha ha...

wait, he was one of the brightest in the treasury?

Wed, 01/23/2013 - 20:16 | 3181243 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

Can't hack it in the real world. Goes to run for office in a failing state. WHAT A FUCKING LOSER.

Wed, 01/23/2013 - 22:04 | 3181520 Remington IV
Remington IV's picture

Got my vote

Wed, 01/23/2013 - 20:15 | 3181244 nmewn
nmewn's picture

Another example of "I suck at everything I do."

I predict a long tenure at some nondescript university further indoctrinating government schooled youth who are up to their eyeballs in debt.

Seems like a perfect fit.

Wed, 01/23/2013 - 20:55 | 3181340 yogibear
yogibear's picture

Kashkari, is like the others that live in the Ivory towers of the fuck up universities.

Like Krugman and Bernanke they fill those young minds full of useless economic BS. Produce more PhDs with thesis that are garbage.

How did you thesis work out Bernanke?

Wed, 01/23/2013 - 20:16 | 3181245 SmittyinLA
SmittyinLA's picture

I guess he figures the hacks in CA owe him for saving their asses (for a lil while at least). 

Wed, 01/23/2013 - 21:14 | 3181375 knukles
knukles's picture

He didn't do anything for California except pay some income and property taxes.

And this shit about running for office.
He ain't won fuckola*, yet.

 

*fuckola (n. modern Italian)  1.) a natural lubricant derived from the fucku plant found in the more violent regions of Sicily  2.)  the process of applying lubricants derived from the fucku plant to sensitive areas of the body in exchange for public funds, usually takes the form of a public official's fist and forearm up to the elbow inserted into the public's rectum without permission.  3.) euphemistically used as a surrogate for the null set**

**null set.... naught, zip, zilch, not even a vaccuum.... sorta like running for office in CA on a Republican ticket.  Dickwad.

Wed, 01/23/2013 - 20:19 | 3181252 Dr. Engali
Dr. Engali's picture

Noun: Wild ass guess...... You crack me up Tyler. No place else but The Hedge.

Wed, 01/23/2013 - 20:20 | 3181256 SmittyinLA
SmittyinLA's picture

the LA County Assessors'  office will be opening soon, http://www.loscerritosnews.net/2013/01/22/breaking-assessor-noguez-to-st...

Very soon 

 

Wed, 01/23/2013 - 20:23 | 3181273 Yen Cross
Yen Cross's picture

Japonomics ,<

Wed, 01/23/2013 - 20:26 | 3181276 kalasend
kalasend's picture

Thumb up if you think Kashkari should appear in Prometheus sequel as an "engineer".

Wed, 01/23/2013 - 20:35 | 3181286 EclecticParrot
EclecticParrot's picture

Not surprised --  mismanaging money is a requisite skillset for any CA office holder, and the only difference is that instead of frequent 'guru' appearances on CNBS, he'll opt for MSNBS.  If it's true he loaded up on golden delicious AAPLs, then perhaps a more appropriate moniker would be Kneel Hara-(Cash)-Kiri.

Wed, 01/23/2013 - 20:31 | 3181291 johngaltfla
johngaltfla's picture

So who and on which network, CNBS or Blowmeberg, will bow down and give him his departing blow job, er, final interview as part of PIMPCO?

Wed, 01/23/2013 - 21:16 | 3181390 knukles
knukles's picture

Nobody.

Chopped meat, damaged goods, toxic assets....

Wed, 01/23/2013 - 20:36 | 3181299 Zer0head
Zer0head's picture

the real news tonight is that the admin confirmed Bouncey used her lips but not her throat

Wed, 01/23/2013 - 20:36 | 3181309 Antifederalist
Antifederalist's picture

Ferrari Neil.

What a piece of shit.

Back to Goldman?

Wed, 01/23/2013 - 20:48 | 3181329 William.M.Tweed
William.M.Tweed's picture

This guy gave James Woods some great advice on Too Big To Fail

Wed, 01/23/2013 - 20:49 | 3181331 yogibear
yogibear's picture

Kashkari, you useless Federal Reserve tool you can always go back to licking Benny Bernanke's shoes.

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