CNBC’s David Faber is reporting that PIMCO was going to fire Chief Investment Officer Bill Gross tomorrow due to “increasing erratic behaviour.”
According to Faber’s sources, Gross made his move first.
Gross announced this morning that he’s leaving the firm he founded effective immediately. He’s joining Janus Capital.
Faber is also reporting that employees gave an ultimatum that they were going to leave the firm.
“While we are grateful for everything Bill contributed to building our firm and delivering value to PIMCO’s clients, over the course of this year it became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take PIMCO forward,” PIMCO said in a statement.
Earlier this year, Gross was the subject of an incredibly unflattering Wall Street Journal article.
The inside account detailed how Gross clashed with Mohamed El-Erian in front of the other employees. El-Erian, PIMCO’s CEO/co-CIO, resigned from PIMCO in January.
Sources also told the Journal that Gross referred to himself as “Secretariat,” the legendary racehorse. The article also said that Gross doesn’t like his traders making eye contact or speaking with him.
PIMCO is expected to release a succession plan later today.