Bill Gross’ departure from PIMCO last Friday was so shocking that people are still talking about it.
And since he left the firm abruptly in January, Mohamed El-Erian, PIMCO’s former CEO and co-CIO, had to chime in.
El-Erian appeared on-air with Bloomberg TV’s Betty Liu on Friday to discuss the US economy and Gross’ departure.
He told Liu that he wasn’t expecting this from Gross.
“I was very surprised,” said El-Erian. “Both the fact that it happened and how it happened was a surprise.”
But he wasn’t surprised by the new Dan Ivascyn-led PIMCO team.
“I’ve worked with these people. I know them really well. They are superb and Dan Ivascyn is superb as a leader,” he added.
Bill Gross joined Janus Capital following his PIMCO departure. He took over the firm’s global macro bond trading from Newport Beach, California last Monday.
CNBC’s David Faber reported that Gross quit to preempt his own firing. It is reported that he was exhibiting erratic behaviour for months prior to his resignation.
Following his departure, investors had pulled out around $US10 billion from PIMCO.