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The New Normal? Bond Fund Managers Buying Stocks (Bill Gross now into equity linked securities)
Business Insider ^ | 12/17/2010 | Joshua Brown

Posted on 12/17/2010 9:00:57 AM PST by SeekAndFind

This one is for the hard of hearing and the folks all the way in the back of the auditorium...

Bill Gross, the "Bond King", has just changed the rules to allow for the buying of equity-linked securities in his Pimco Total Return flagship fixed income fund (the largest mutual fund on earth).

My "tidal wave of money out of bonds into stocks" call from October (When the Levee Breaks) is looking ridic right about now. Oh yeah, on August 26th, I told you you they were coming for that long bond. I was 30 days or so early (Save This Post Like It Was Private Ryan). Many in the blogosphere were all over this.

From Bloomberg:

Bill Gross’s Pimco Total Return Fund, the world’s largest mutual fund, is expanding its policy to allow investments in equity-linked securities for the first time since 2003.

Pimco Total Return may put as much as 10 percent of assets in securities including preferred stock and convertible bonds as early as the second quarter of next year, according to a filing today with the U.S. Securities and Exchange Commission. The fund won’t invest in common stock, the Newport Beach, California- based firm said.

Gross wants to buy common stocks so bad he can taste them. By the way, pay no attention to all those equity ETFs that Pimco is working on...

The Bond King hates bonds. What more do you need to hear?

(Excerpt) Read more at ...

TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: billgross; bonds; pimco

1 posted on 12/17/2010 9:01:02 AM PST by SeekAndFind
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To: SeekAndFind

I know Bill Gross and have since the mid 1990s. What a complete POS. He appeared with Geithner supporting the existence of Fannie and Freddie, simply to support his MBS purchases. So, the rest of us face staggering taxes to support Bill Gross’ investments.

Don’t listen to ANYONE from PIMCO. Another corrupt financial player with ties to Obama and the Democrats.

2 posted on 12/17/2010 9:24:55 AM PST by whitedog57
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To: whitedog57

I’m not in love with Bill Gross. And maybe he had some government connections (which is unfair).

But I have to say that his PIMCO TOTAL RETURN FUND was one of my portfolio’s best and safest performers the past decade ( even during the 2000 stock market crash ) and the 2008 financial crisis.

That he is now looking at equities tells us a lot about how he views the bond market...

3 posted on 12/17/2010 9:33:49 AM PST by SeekAndFind
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To: SeekAndFind

Pimco’s made a lot of money off the Fed. they borrowed during Tarp and then...

“The Fed effectively telegraphed its intentions to the Street before buying the bonds. Legendary money manager Bill Gross, who oversees more than $1.2 trillion at Pacific Investment Management Co. said last month during a television interview that part of his success over the last 18 months was due to buying securities in front of the Fed, and selling them to the Fed at a premium, allowing him to profit handsomely. Gross runs PIMCO’s $252.2 billion Total Return Fund.”

Pimco Raises U.S. Growth Forecast on `Massive’ Stimulus

4 posted on 12/17/2010 9:36:34 AM PST by FromLori (FromLori)
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To: SeekAndFind

Equities are doing very well. 80% of my TSP (federal employees’ version of 401k) is in stocks. Enjoying a very nice return.

5 posted on 12/17/2010 11:42:57 AM PST by Poundstone (A recent Federal retiree and proud of it!)
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