Photo: Bloomberg Television
When you’re considered to be a “bond god” and you go short the bond market ahead of a historic rally, and end up as one of the worst bond managers of the year, that doesn’t help on the fundraising front.WSJ Marketbeat reports that the fundraising numbers at the PIMCO Total Return fund have been abismal lately.
This year through the end of the third quarter, the fund attracted $183.5 million in new contributions, according to data compiled by fund tracker Lipper under the request of Dow Jones Newswires. The fund lured $17.6 billion in new money last year, $57.7 billion in 2009, and $20.4 billion in 2008.
“For a fund with over $240 billion in it, an inflow of $180 million is close to zero,” said Jeff Tjornehoj, senior research analyst for Lipper. “Being on the wrong side of the Treasury bond market rally injured performance and reputation. When someone so visible makes a mistake it has large consequences.”
The article cites one institutional money manger who actually pulled money from Gross.
This news puts some interesting context on the news from earlier this week, that Gross has now swung for the fances, and gone uber-long the long bond.
It’s a huge bet, after a huge move, meaning it’s really dicey, but it kind of looks like Gross is pushing at this point.