In a few hours we’ll know who is to replace Bill Gross as head of PIMCO since he abruptly left the firm Friday morning, according to Bloomberg.
The trillion dollar bond fund was founded by Gross, but over the last year turmoil has been reported from inside the firm. If Gross hadn’t quit, sources tell CNBC’s David Faber that he would have been fired anyway for his increasingly erratic behaviour. Other employees threatened to leave the firm if Gross did not.
Most of this started when one of them did. In January Gross’ co-CIO and heir apparent Mohamed El-Erian quit the firm.
That’s when the reports of Gross’ behaviour started flowing out of the firm, and those were as grim as the money that PIMCO was losing to outflows as well. In August Gross’ flagship, personally managed fund had 16 months of outflows totaling $US68 billion, cumulatively.
So we’ll see who PIMCO expects to turn this ship around.