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Depite Bearish Rhetoric, Bill Gross Retains Treasurys As Most-Held Asset
A month ago, Bill Gross stirred up a storm in rates with his tweet that the "Bull bond market was dead" which caught us by surprise because just in the preceding month, PIMCO's flagship Total Return Fund raised its allocation to government-related (read TSY) bonds to the highest in three years, with a net exposure of 40% of AUM, or about $117 billion. Of course, the data was backward looking so it was possible that the firm had changed its opinion entirely and in the following two weeks proceeded to purge its TSY holdings. It didn't. In fact, as of the May TRF holdings update, PIMCO's TSY holdings, which many expected to collapse, declined by a whopping... 2% of total from 40% (net of agency and swaps) to 38%. So much for the great Newport Beach rotation.
Perhaps more interesting is the distribution of paper maturity held by PIMCO. In May the TRF took its effective duration up modestly from 5.04 to 5.15.
But most interesting was that in May the Total Return Fund, which clocked in $285.2 billion in AUM, saw its first decline (down $7.7 billion from the $292.9 billion the month before) since November 2011.
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Strategy only works untill it doesnt.
Just a matter of time 'till the bond king becomes the bond jester
"one month" defines your strategic time horizon? get some data first THEN start talking about time frames (if ever). interesting too because "the story was that the headline lied"...although who knows what Bill Gross himself is doing...other than building a 100 million dollar house i think. i do agree it will be interesting to see what management does from here...i will be watching to see what the Federal Government does vis a vis Syria this week. "supposedly a big announcement" from ye olde "tomorrow's news today" people. what's next? "let me write that editorial for you" as well?
He is hedging rates are getting murdered
Fuck him
Yesterday he said it would be 3-5 years before we might have a recession.
Might have a recession. he said instead of saying that it would take him 3-5 years to unwind that mass of shit he's accummulated to unsuspecting fall guys.
That guys just another cheap grifter.
Gross & Buffett are both tools of The Syndicate
"Gross" being the keyword.
I like the bottom graph because it's psychadelic, man.
Bill is just looking for the highest point on the prarie as the floods begin.
Treasuries on special 'till ZIRP is a memory. The other shirts ain't pure white no matter how long the tricklighting works on the other fabrics.
Is the same person writing all these comments?
Perhaps, because they know that no policy changes will come in June.
There's a reason it's called "PIMPCO".
Headline Error: Despite
Gross is a smart guy, I don't understand the criticism here. He goes on Twitter everyday and complains about Bernanke's free money policies. And unlike ZH commenters who retain their anonymity, he is risking the reputation of a $1 trillion dollar asset management company with every single tweet.
What are you talking about? He gives advice and then completely goes against it himself. There's no logical connection between his words and his actions. Like Goldman Sachs, the guy has no credibility among savvy investors.
Gross is rotating out of negative convexity assets (mortgages) into treasuries. Nuf said.
Am I the only one on here who has heard Bill say one thing and do precisely the opposite when it comes to his portfolio allocations?, it's called talking your book, and yes the worlds biggest bond manager does it as well,when the bond bubble finally bursts, his bond fund investors are going to lose a huge chunk of their wealth, but he can then just blame Bernanke or his successor,after all, he's covered himself and the firm by openly criticising Bernanke and the Fed over the years. Caveat Emptor old boy,Caveat Emptor.
Kuroda to Gross: How many are you bidding?
What is the fascination with Bill? He is a bond fund manager. As such he buys bonds. People do not invest in bond funds to hold cash. Thus Bill must buy Bonds even if he doesn't want too. He simply must hate treasuries less than he hates other bonds at this point.
The problem with managing a fund that you don't believe in is that you end up with a conflicting dual mandate. Any investment manager has a dual mandate. First, they're supposed to give people honest advice. Second, they're not supposed to say anything to sabotage their own customers. Clearly, the two mandates only mesh when you believe in the product that you're selling.
And with Bill Gross, the dilemma is exacerbated because he's such a prominent figure that his words and actions can move mountains in the market. The bigger a player you are, the more likely it is that anything you do or say is wrong.
This is why mega-players like Bill Gross and Goldman Sachs have the least real credibility of all.
There is no fascination with Bill, many of us just think that he should take a leaf out of Hugh Hendry's book and learn to keep quiet.