PIMCO’s equity divsion is still a small fraction of their business, but its new manager describes it as a talent magnet in an interview with Businessweek.
Neel Kashkari—the man who ran TARP and one of 2008’s ‘sexiest men alive‘—says he’s snatched managers from Goldman Sachs, Franklin Templeton, and Capital Group.
Currently, the talent is sad that they have to market so much at firms that are more well-established in the equity market. They miss investing, something that they’d have more of an opportunity to do at a budding equity shop. In other words, they’re easy poach targets. So he nabs them for equity investing jobs at PIMCO.
He told the magazine,
“I spend a lot of my time recruiting,” says Kashkari, who adds that plenty of people want to work at Pimco. “I get cold-called by the bluest of blue-chip managers” who complain that their employers are more focused on marketing than investing, he says.
The bond giant now runs three equity funds. They contain about $4.5 billion of PIMCO’s $1.3 trillion AUM, reports Businessweek.
Kashkari explained the firm’s growing interest in stock picking: “Interest rates can’t go lower. There can’t be another 30-year bull market in bonds.” PIMCO’s recent investments include the Russian bank Sberbank, the Hong Kong insurance company AIA Group, and “certain Western currencies that Pimco has found move in the opposite direction of the stocks.”
He was originally hired by the firm in 2009.
Now check out Kashkari comparing the economy to the ‘Terminator’ movies.