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PIMCO Rehires Paul McCulley As Its "100 Days Per Year" Chief Economist

Tyler Durden's picture




 

Four years after he left the firm, PIMCO is hiring back Paul McCulley to save its brand and provide just enough ammo to defend its bullish/bearish positions now that El-Erian's disagreements have left. Unlike some firms who believe that 'chief economists' must be full-time - adding value each and every day with their extrapolations of every macro tick - McCulley will spend up to 100 days per year working in PIMCO offices. Bearing in mind McCulley's previous lazer-like focus on Capex (which is dismally flat still) and his belief in a "W" shaped recovery not a "U" or a "V", we suspect the bearded prognosticator will have a bullish bond bias - especially as the trillions of ticking time bombs in the shadow banking system remain as incendiary as ever.

McCulley's Global Macro Chessboard:

 

Full PIMCO Statement:

PIMCO, a leading global investment management firm, has hired Paul McCulley as a Managing Director and the firm's Chief Economist, a new role for the firm. Mr. McCulley will be a member of PIMCO's Investment Committee and will report to Bill Gross, Founder and Chief Investment Officer. 

As Chief Economist, Mr. McCulley's responsibilities will include chairing the Investment Committee several times monthly to lead discussion on global macroeconomic issues and central bank policy, writing and publishing commentary, and speaking with PIMCO's clients around the world. He will not manage client portfolios or serve as a portfolio manager.

Said Mr. Gross: "Paul is an experienced and respected thought leader on macroeconomic issues and central banks and he will be an important contributor to our investment process. During his previous years at PIMCO, he played an instrumental role in anticipating and understanding economic dynamics that led to the global financial crisis. Our clients will benefit from Paul's tremendous knowledge as we identify and capitalize on opportunities in PIMCO's New Neutral."

Said Douglas Hodge, PIMCO's Chief Executive Officer: "Bill Gross is one of the most talented and successful investors of our time, and he has built PIMCO over the past 43 years by attracting world-class talent such as Paul to become part of our team. We are excited to have Paul join the firm in his new role and we appreciate Bill's personal leadership in recruiting Paul to the firm."

Over the past three years, Mr. McCulley, 57, has been chair of the Global Society of Fellows at the Global Interdependence Center, where he published two path-breaking papers on monetary and central bank policy. Both papers can be accessed here:

http://cdn2.interdependence.org/wp-content/uploads/2013/01/Helicopter_Money_Final1.pdf
http://cdn3.interdependence.org/wp-content/uploads/2012/03/Paul-McCulley-Fellows-Paper.pdf

Mr. McCulley first joined PIMCO in 1990 as an account manager. He left two years later to become Chief Economist for the Americas for UBS. He returned to the firm in 1999 as a portfolio manager, and became the head of the firm's Short-Term desk and a member of the Investment Committee, and also led PIMCO's Cyclical Forum.

A prolific author of thought leadership, economic and market commentary, Mr. McCulley coined the term "Shadow Banking System" to refer to the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks, and which played a role as catalysts for the global financial crisis. He also developed the concept of a "Minsky Moment," referring to a sudden major collapse of asset values as part of a credit or business cycle.

Said Mr. McCulley: "I look forward to working side by side with Bill as economic counselor and interacting with the Deputy CIOs. I anticipate writing frequent scholarly essays, as well maintaining a robust calendar of speaking engagements. PIMCO will always be Camelot to me."

Mr. McCulley will spend up to 100 days per year working in PIMCO offices around the world, and he will also continue to dedicate a portion of his time to activities outside of the firm, including leading the Morgan le Fay Dreams Foundation, as well as academic activities.

Bio of Mr. McCulley:
Prior to joining PIMCO in 1999, Mr. McCulley was Chief Economist for the Americas for UBS, and also Head of Fixed Income Strategy. While there, he was recognized for his work by being named to six seats on Institutional Investor Magazine's All America Fixed Income Research Team, in three different specialties. He wrote a widely read weekly research publication, Strategic Economic Perspectives, and visited with clients around the world, with extensive interaction with central banks in the emerging world, especially the Middle East and Asia, as well as Latin America.

Mr. McCulley received an MBA from Columbia University Graduate School of Business, where he was a member of the honor society Beta Gamma Sigma, with a triple concentration in finance, money and financial markets, and economics. He received his BA in economics, with honors, from Grinnell College in Grinnell, Iowa, where he is now a Trustee.

Since leaving at the end of 2010, Mr. McCulley has complemented his scholarly work with the Society of Fellows with extensive involvement in the activities of his personal charitable foundation, Morgan le Fay Dreams, which he founded and endowed in 2006. His foundation focuses on charities devoted to young adults and education, including serving as executive producer of acclaimed documentaries.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

 

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Tue, 05/27/2014 - 12:26 | 4798717 Dr. Engali
Dr. Engali's picture

Hey Bill...... BTFD. Now where do I send my invoice? I'll see you next year.

Tue, 05/27/2014 - 12:31 | 4798734 smlbizman
smlbizman's picture

it continues to pay to be an ex beatle....what?...oh..never mind

Tue, 05/27/2014 - 12:48 | 4798784 power steering
power steering's picture

Bass player for Savoy Brown

Tue, 05/27/2014 - 13:26 | 4798892 mc225
mc225's picture

lol... i'd thought maybe he would be spending the other 265 days each year, on tour with styx or kansas.

Tue, 05/27/2014 - 14:15 | 4799032 Jumbotron
Tue, 05/27/2014 - 17:21 | 4799691 DaddyO
DaddyO's picture

Paul McCulley is chairman of the Global Society of Fellows of the Global Interdependence Center (GIC).

Prior to endowing the Society and becoming its first chair, Paul was a senior partner at PIMCO, the world’s premier fixed income investment advisory firm, where he was a member of the investment committee, manager of multi-billion dollar portfolios and founding author of the research publication, Global Central Bank Focus.

A devout Keynesian and interpreter of the work of Hyman Minsky, Paul coined the terms “minsky moment” and “shadow banking system.” While at PIMCO, he appeared regularly in the business media. Paul was also a member of the US Treasury’s Borrowing Advisory Committee (TBAC).

Mr. McCulley earned his B.A. from Grinnell College, Grinnell, Iowa, where he now sits on the Board of Trustees, and his MBA from Columbia University’s Graduate School of Business.

In his retirement from active portfolio management, Paul spends a lot of time fishing and listening to his whiskers grow, while nurturing his family life as a father.

He also is an entrepreneur in angel investing opportunities, while pursuing his philanthropic visions as president of the Morgan le Fey Dreams Foundation, which he founded and endowed in 2006.

What does this say about Pimco and Bill Gross?

Really I could care less as I don't have any interest in Pimco or any other fund or market anymore.

They're all rigged games and I got tired of being fleeced years ago, my investments are all local and in things I have direct control over.

I would highly recommend that those who are likeminded do the same...invest locally.

DaddyO

Tue, 05/27/2014 - 12:34 | 4798742 knukles
knukles's picture

Jeeez....
Bill must be worried about his legacy (Got enough money, FFS)
McCulley is top notch, about as good as one can get.  The dude knew where when and how stresses manifest themselves in financial markets, viz, sitting on and heading up the short term/money desk.
All financial crises begin with solvency and liquidity, Bitchez.
Gotta love the press release.
They get one of the best back, and start the tooting of the horn with accolades to Bill Gross.

sigh

Tue, 05/27/2014 - 14:04 | 4799007 Jumbotron
Jumbotron's picture

Since leaving at the end of 2010, Mr. McCulley has complemented his scholarly work with the Society of Fellows with extensive involvement in the activities of his personal charitable foundation, Morgan le Fay Dreams, which he founded and endowed in 2006. His foundation focuses on charities devoted to young adults and education, including serving as executive producer of acclaimed documentaries.

 

Are you fscking kidding me ?  Who names their foundation after a fictional sorceress from the Arthurian romances ?

 

https://upload.wikimedia.org/wikipedia/commons/b/bc/Sandys,_Frederick_-_...

http://www.howarddavidjohnson.com/The%20Education%20of%20Morgan%20Le%20F...

 

"The Rich.  You know why they're so odd ?  Because they can afford to be. "

https://www.youtube.com/watch?v=qZxZ-bzlOZQ

 

Tue, 05/27/2014 - 12:26 | 4798719 the 300000000th...
the 300000000th percent's picture

Is that a pic of Brad Pitt?

Tue, 05/27/2014 - 12:36 | 4798746 knukles
knukles's picture

He grew is hair and beard out... (Honestly)

Tue, 05/27/2014 - 15:55 | 4799378 NotApplicable
NotApplicable's picture

I didn't even recognize him at first. Had to go to google him.

Then I did a double-take.

Tue, 05/27/2014 - 12:26 | 4798721 Pooper Popper
Pooper Popper's picture

Off subject ,,,but WTF?

http://miami.cbslocal.com/2014/05/26/officials-flpd-bso-attempting-to-co...

 

 

Geeee,I wonder what the "youth looked like?

What a bunch of shit,The presstitute media is Fucking insane!

Dont show the facts,,,What Bullshit!

 

Tue, 05/27/2014 - 14:01 | 4798995 quasimodo
quasimodo's picture

Agree, but it would seem the locals there posting in the comments section know better. Pretty funny stuff there if you take a few minutes to scroll down to read some of them.

Tue, 05/27/2014 - 12:36 | 4798745 Atomizer
Atomizer's picture

Another pony tail bunny that shits from the back of his neck.

http://i1.ytimg.com/vi/sCfhaPT_71k/mqdefault.jpg

Tue, 05/27/2014 - 12:39 | 4798757 1stepcloser
1stepcloser's picture

Get a hair cut hippie.

Tue, 05/27/2014 - 12:42 | 4798766 with the king
with the king's picture

It's that Allman Brothers dude!

Tue, 05/27/2014 - 12:48 | 4798781 Downtoolong
Downtoolong's picture

Mr. McCulley will spend up to 100 days per year working in PIMCO offices around the world

Actually, he will be working year round. But, he only goes to the office to collect a check on the days he makes a correct call, which like most economists is slightly less than 50% of the time.

 

Tue, 05/27/2014 - 12:57 | 4798812 offexit76
offexit76's picture

 A bunch of old bald guys must be here today.

Tue, 05/27/2014 - 13:17 | 4798867 Atomizer
Atomizer's picture

Nope. My hair still grows like a grey/black weed. I decided not to do drugs. Think about that!

Tue, 05/27/2014 - 16:21 | 4799471 offexit76
offexit76's picture

Make any sense much?

Tue, 05/27/2014 - 13:04 | 4798830 Brokenarrow
Brokenarrow's picture

they did some blow fri night and mc c banged gross' wife in the bathroom. good cause for a new alliance

Tue, 05/27/2014 - 13:04 | 4798833 DR
DR's picture

At first, I though that was a picture of Jesus and then I remembered that Bill Gross is jewish....

Tue, 05/27/2014 - 13:05 | 4798835 kurt
kurt's picture

He'll be PimpCo's Huckleberry!

(the only plant that grows on tombstones)

Tue, 05/27/2014 - 13:15 | 4798858 walküre
walküre's picture

When the going gets tough, they call in the toughest guy to beat the market odds. Obviously this man has experienced living in the real wild and is not phased by anything. Whatever the market throws his way, he will be able to respond. No, even better. He is prepped to stay ahead of the market and make sure the loot comes out safely at the other side of the storm.

Yup, we're in for a wild ride and it will take guys like Survivor Man or Mountain Man to pick the right tools and whack their way through the jungle and clear the path for their nervous and scared investor followers. In a way, he's like Moses who will part the sea when the sea needs to be parted. He will fend off bulls and bears alike nipping at their toes as they hurry through the deserts and jungles to a safe abode and higher grounds.

This is the real deal. This guy is going to chop the walls of Wall Street with his bare hands and claw himself up 50 story buildings to swing on interwebs of datapoints! His trading technique is faster than the speed of light and he will crush all HFTs and string them up by their own algos!

Tue, 05/27/2014 - 13:19 | 4798872 youngman
youngman's picture

So no CNBC interviews every day...only 100 days a year...what to do with the other 265 days.....idle hands are the Devils workshop....

Tue, 05/27/2014 - 13:54 | 4798976 January Jones
January Jones's picture

Dear Paul,

Wisdom from a re-retired Ex CEO friend:  "I learned there are no part time jobs."

Pleased we can look forward to your thoughts again.

Tue, 05/27/2014 - 14:01 | 4798997 quasimodo
quasimodo's picture

Is that Curt Cobain ressurected from the dead?

 

Tue, 05/27/2014 - 14:55 | 4799139 CaptainSpaulding
CaptainSpaulding's picture

Is that you Rick Wakeman...Is this me?

Tue, 05/27/2014 - 15:29 | 4799298 LFMayor
LFMayor's picture

Whew.  There for a minute, I had a little panic attack because I thought Jesus had joined the banksters instead of beating the piss out of them.

Tue, 05/27/2014 - 16:34 | 4799512 RadioactiveRant
RadioactiveRant's picture

Is he the one that won Eurovision?

Wed, 05/28/2014 - 07:15 | 4801214 butchtrucks
butchtrucks's picture

Eat a peach Skydog.

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