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Mohamed El-Erian Leaving PIMCO

Tyler Durden's picture


Moments after the novelty news that Neil "Chump" Kashkhari will run for California governor (as a Democrat), the real PIMCO news hit: Mohamed 'New Normal' El-Erian is no longer a the ecompany.

From the press release:

Pacific Investment Management Company LLC (PIMCO), US-based Asset Management subsidiary of Allianz, has reorganized its leadership structure. Mohamed El-Erian, Chief Executive Officer and Co-Chief Investment Officer of PIMCO, today has resigned from his functions effective mid-March and will leave PIMCO at the same time. He will stay on the International Executive Committee of Allianz and will advise the Board of Management of Allianz SE on global economic and policy issues.


Mohamed El-Erian will directly report to Michael Diekmann, CEO of Allianz SE.


William H. Gross, founder of PIMCO, will remain Chief Investment Officer.


Portfolio management will be strengthened by the appointment of the Managing Directors Andrew Balls and Daniel Ivascyn as Deputy Chief Investment Officers.


In today's meeting, effective as of the above-mentioned date, PIMCO's Managing Directors also elected Douglas Hodge, Managing Director and currently Chief Operating Officer of PIMCO, as Chief Executive Officer and Jay Jacobs, Managing Director and currently Global Head of Talent Management, as President. Craig Dawson, Managing Director and currently Head of PIMCO Germany, Austria, Switzerland and Italy, will assume the position as Head of Strategic Business Management.

Is this an indication that the bond pessimism has topped out, or does it simply mean that it is now time to move on from the New Normal to the New New Normal

And a little uncomfortable message from Bill Gross to go along with this news...

Finally, here is the press release just released by PIMCO:

PIMCO, a leading global investment management firm, announced today that Chief Executive Officer and Co-Chief Investment Officer Mohamed A. El-Erian has decided to step down from his role and leave the firm in mid-March. He will remain a member of the Allianz International Executive Committee and, as of mid-March, also advise the Board of Management of Allianz on global economic and policy issues.  PIMCO’s founder William H. Gross will continue to serve as the firm’s Chief Investment Officer. At the same time, the firm has appointed a new portfolio management and executive leadership team. They will immediately begin to transition into their new roles.

Portfolio Management leadership appointments:
  • Andrew Balls, Deputy Chief Investment Officer: Mr. Balls is a Managing Director in the London office, a member of the Investment Committee and Head of European Portfolio Management. He joined PIMCO in 2006.
  • Daniel Ivascyn, Deputy Chief Investment Officer: Mr. Ivascyn is a Managing Director in the Newport Beach office, Head of Mortgage Credit Portfolio Management, and a lead portfolio manager for PIMCO’s alternatives investment strategies. Morningstar named him 2013 Fixed-Income Fund Manager of the Year (US). He joined PIMCO in 1998.
Business Management leadership appointments:
  • Douglas Hodge, Chief Executive Officer: Mr. Hodge is a Managing Director in the Newport Beach office and is currently PIMCO’s Chief Operating Officer. Previously he led the firm’s Asia Pacific region from the Tokyo office. He joined PIMCO in 1989
  • Jay Jacobs, President: Mr. Jacobs is a Managing Director in the Newport Beach office and is currently the Head of Talent Management globally. Previously, he was the Head of PIMCO’s German business, based in Munich. He joined PIMCO in 1998.
  • Craig Dawson, Head of Strategic Business Management: Mr. Dawson is a Managing Director and is currently Head of PIMCO Germany, Austria, Switzerland and Italy, based in the Munich office. He is also Head of Product Management for Europe. In his new role, he will relocate to the Newport Beach office. He joined PIMCO in 1999.
Said Mr. Gross: “Mohamed has been a great leader, business builder and thought leader for PIMCO and our clients. Together we have guided the firm and served our clients during a period of significant change in the global economy and financial markets. We are pleased that he will remain a part of the Allianz Group.”
Mr. Gross added: “PIMCO‘s focus remains on delivering value to our clients through superior investment performance and client service. The firm’s new leadership team embodies PIMCO’s culture and values, and it reflects the strength and depth of our talent in both portfolio management and business management. With this team to lead us forward, PIMCO is in great hands.”
Said Dr. El-Erian: “I have been extremely honored and fortunate to work alongside Bill Gross, who is one of the very best investors in the world. His talents are truly exceptional, as is his dedication. I have also been amazingly privileged to work with the most talented group of professionals in the investment management industry. Their commitment and tireless work on behalf of our clients have been a consistent inspiration for me since I first joined PIMCO back in 1999.  I wish them continued great success.”
Said Mr. Hodge: “PIMCO has become one of the leading investment management firms in the world through a relentless focus on performance, innovation, and delivering value to our clients, and that will not change. The firm has made important progress over the past several years to become ‘Your Global Investment Authority’ by expanding the scope of our investment platform and business, and we will continue to execute on this vision.”
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Tue, 01/21/2014 - 17:08 | 4353029 Winston Churchill
Winston Churchill's picture

One rat can read the writing on the bulkhead.

Tue, 01/21/2014 - 17:13 | 4353064 gmrpeabody
gmrpeabody's picture

Say it ain't so, Moe...

Tue, 01/21/2014 - 17:16 | 4353078 THX 1178
THX 1178's picture

yeah, PIMCO owns a lot of bawnds. A LOOOOOOOOOOTTTTTTTTT of them. They will surely eat shit.

Tue, 01/21/2014 - 17:19 | 4353083 fonestar
fonestar's picture

Bonds are the place to be for the next ten years, pretty soon you will be able to double and triple your money lending it to .gov for a few years.

Tue, 01/21/2014 - 17:24 | 4353110 Pladizow
Pladizow's picture

Good luck with that fonehack!

Tue, 01/21/2014 - 17:29 | 4353130 fonestar
fonestar's picture

Hey, I didn't say how much stuff that money will buy did I?

Tue, 01/21/2014 - 17:37 | 4353158 remain calm
remain calm's picture

He is going to do porn.

Tue, 01/21/2014 - 17:52 | 4353223 Colonel Klink
Colonel Klink's picture

Mohammed El Make'nitRain?

Tue, 01/21/2014 - 18:28 | 4353367 kaiserhoff
kaiserhoff's picture

I will mith the lithp;)

Tue, 01/21/2014 - 19:36 | 4353579 TheTmfreak
TheTmfreak's picture

Bill Gross is a moron. A battery charged over 100% is actually bad for a battery.

Tue, 01/21/2014 - 20:03 | 4353673 BKbroiler
BKbroiler's picture

Gross: PIMCO’s fully engaged. Batteries 110% charged. I’m ready to go for another 40 years!

translation - I am scared shitless.  What the hell was I thinking tweeting about Icahn and the "end of growth"? Who the hell wants to hear that from the world's largest bond fund manager?  El Erian was the only guy giving this shithole an air of respectability, now he's gone.. 
40 years Lol.  If Bill's kids use one of those plant-an-urn things, he will be a mighty oak in 40 years.
Tue, 01/21/2014 - 20:30 | 4353773 notbot
notbot's picture

Is he shaving that 'stache? THAT would be newsworthy. 

Tue, 01/21/2014 - 20:54 | 4353837 johngaltfla
johngaltfla's picture





Guess those CNBS appearances really DON'T boost one's profitability.....

Tue, 01/21/2014 - 20:43 | 4353806 El Oregonian
El Oregonian's picture

That is "Assault on Battery".

Tue, 01/21/2014 - 23:35 | 4354322 The Big Ching-aso
The Big Ching-aso's picture

The guy always reminded me of Gomez Adams for some reason.

Tue, 01/21/2014 - 18:15 | 4353308 LetThemEatRand
LetThemEatRand's picture

"He is going to do porn."

Mo Hammer El Anal, in:  PIMPCO II -- Come To PIMPCO.

Tue, 01/21/2014 - 18:41 | 4353406 CheapBastard
CheapBastard's picture

Rumors have it that he's dumping groos Bill for Jason Beeber.

Only a rumor...

Tue, 01/21/2014 - 18:00 | 4353247 fonestar
fonestar's picture

I liked El-Erian because of his moustache.  Sometimes I listen to people because of their beards, other times it's their moustache.  Satoshi had a fu manchu that really took me away.

Tue, 01/21/2014 - 18:20 | 4353333 zerozulu
zerozulu's picture

I heard life of a FIAT currency is 40 years.

Tue, 01/21/2014 - 18:38 | 4353402 SilverIsKing
SilverIsKing's picture

You must love Duck Dynasty then.

Tue, 01/21/2014 - 19:01 | 4353445 jbvtme
jbvtme's picture

my most pleasant conversations have been with beards

Tue, 01/21/2014 - 19:22 | 4353535 logicalman
logicalman's picture

Getting linguistic with Bearded clams?

Tue, 01/21/2014 - 19:54 | 4353650 qqqqtrader
qqqqtrader's picture

Lip reading, not with your eyes... but with your tongue

Tue, 01/21/2014 - 20:22 | 4353753 RabbitChow
RabbitChow's picture

This Absalom did wipe his mouth all dry;
Dark was the night as pitch, aye dark as coal,
And through the window she put out her hole.
625 And Absalom no better felt nor worse,
But with his mouth he kissed her naked arse
Right greedily, before he knew of this.
Aback he leapt- it seemed somehow amiss,
For well he knew a woman has no beard;

--geoffrey chaucer

Tue, 01/21/2014 - 19:00 | 4353456 Theosebes Goodfellow
Theosebes Goodfellow's picture

You guys got it all wrong. El-Erian's moustache fell hair to a fortune. No need to work anymore...

Tue, 01/21/2014 - 17:29 | 4353131 foodisgood
foodisgood's picture

I HEARD phoneHOMEstar hired him to pimp his co.

Tue, 01/21/2014 - 17:34 | 4353147 fonestar
fonestar's picture

fonestar is more than capable of pimping his own product.  He's like a one man virtual militia.

Tue, 01/21/2014 - 17:47 | 4353195 foodisgood
foodisgood's picture

And I am sure you are the best masturbator in a mirror that ever held/moisturized/stroked/choked a BitCoin

Tue, 01/21/2014 - 18:30 | 4353368 fonestar
fonestar's picture

While there was initially a lot of skepticism about Bitcoin (and especially the origins of Bitcoin) amongst Zerohedge posters, fonestar through much work, consultation and private counselling was able to reach a consensus amongst the most die-hard, ardent skeptics and detractors.  What we ultimately wound up resolving, was that Bitcoin is an excellent and powerful game-changer.  Also, that you should all be heavily invested in Bitcoin to gain exposure to it's wild upswings.

Tue, 01/21/2014 - 18:34 | 4353392 Its_the_economy...
Its_the_economy_stupid's picture

lovin' the repartee

Tue, 01/21/2014 - 21:11 | 4353897 Captain Kink
Captain Kink's picture

Really?  I am sick of the stupid bitcoin argument...like or don't, but shut the fuck about it already...

Seriously, why is it relevant to this thread?

Tue, 01/21/2014 - 20:28 | 4353768 supersajin
supersajin's picture

I stopped saying positive things about Bitcon on this board @ $200. Maybe when it hits 10K Tyler will lead his flock to Bitcoin?

Tue, 01/21/2014 - 20:39 | 4353797 nmewn
nmewn's picture

"Also, that you should all be heavily >>>invested<<< in Bitcoin to gain exposure to it's wild upswings."

So hedge with Tums or what?

Tue, 01/21/2014 - 18:18 | 4353329 wallstreetapost...
wallstreetaposteriori's picture

What are you pimping.... Bitcoins?..  Pretty pethetic.

Tue, 01/21/2014 - 18:21 | 4353336 fonestar
fonestar's picture

What are you pimping....


What you got?

Tue, 01/21/2014 - 18:29 | 4353373 wallstreetapost...
wallstreetaposteriori's picture

I'm pimping reality...hoe.  Not .0000000000000001 worth of nothingcoins.

Tue, 01/21/2014 - 18:30 | 4353379 fonestar
fonestar's picture

By nothing, you mean "dollars" right?

Tue, 01/21/2014 - 21:13 | 4353923 Captain Kink
Captain Kink's picture

Seriously stop it.  We all get it.  We understand your feelings on the subject.  Now please go jerk off on someone who gives a shit.

Tue, 01/21/2014 - 19:03 | 4353464 Theosebes Goodfellow
Theosebes Goodfellow's picture

Just out of curiosity, what's the mark to market on reality these days?

Tue, 01/21/2014 - 21:00 | 4353866 nmewn
nmewn's picture

lol...I gotta say, thats pretty good, no damned good...plus another one for the irony, I love it.

But its still a reality based world ;-)

Wed, 01/22/2014 - 00:45 | 4354481 prains
prains's picture

bonestar has smoked some bone in his time......

Tue, 01/21/2014 - 17:24 | 4353112 maskone909
maskone909's picture

Short end of curve will remain very low. Soon interest rates will be negative once fed monetizes the entire market. Hold at own risk as currency crises will no doubt ensue

Tue, 01/21/2014 - 17:29 | 4353125 Headbanger
Headbanger's picture



Tue, 01/21/2014 - 19:34 | 4353575 John Bigboote
John Bigboote's picture

More like bugging out and getting his preps ready. He must have heard something at a recent insider event that freaked him out.

Tue, 01/21/2014 - 22:43 | 4354161 HardlyZero
HardlyZero's picture

What about the Chinese $4T in the Bahamas ?   Might that start unwinding into the Bond market (uncontrollably) ?   Couldn't that be a new weapon in-play ?

Watch where these guys bug out to...it will be telling if it's some Dacha in New Zealand or Canada.

The plot thickens.

Tue, 01/21/2014 - 17:30 | 4353128 Headbanger
Headbanger's picture




Tue, 01/21/2014 - 18:15 | 4353312 onewayticket2
onewayticket2's picture

More like Steve Miller's "take the money and RUN!"

Tue, 01/21/2014 - 22:25 | 4354170 HardlyZero
HardlyZero's picture


I was caught up in a fever
In that summer of ‘69
And my heart was cryin' out for change
And I knew time was comin' when I'd get away.

So I moved down to that city
Where I met a friend of mine
And I must admit he tried to warn me well
With all those bad luck stories he could tell.

He said "Take the money and run,
Take the money and run
Believe it, in this town you can't trust anyone
You're gonna learn that lesson my son".

"Take the money and run,
Buy yourself a place in the sun
Don't be a fool, don't you trust anyone
You gotta take the money and run, take the money and run".

Tue, 01/21/2014 - 19:15 | 4353508 chump666
chump666's picture

The one month went negative!  The fed will panic jawbone/taper as the collateral is shrinking dramatically (hey just like commie priced fixed systems).  Doomsday scenario for bond holders is China just dumping the lot and the Fed/Treasury then has to void the holdings and buy the gap, of course a major war would prompt that.  Since we are repeating history...

This market is f*cked in 2014

Tue, 01/21/2014 - 19:40 | 4353598 gatorengineer
gatorengineer's picture

In case your not up on current events China just reached record Tbill holdings.  Google is your friend.

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