The FT’s Stephen Foley reports that a man tapped to be a deputy to PIMCO fund chief Bill Gross quit the day his appointment was to be announced “after becoming disillusioned with the famed investor’s stewardship of the bond fund management group.”
Marc Seidner had been serving as interim head of PIMCO’s equities business. He quit just hours before the firm was going to announce CEO and co-CIO Mohamed El-Erian was leaving.
The report will add uncertainty about the fate of the boardroom at the world’s largest bond fund. After the unexpected resignation El-Erian, unflattering reports surfaced regarding Co-CIO Bill Gross’ unique and aggressive management style. That in turn led Gross to tell a Reuters reporter that El-Erian was trying to “undermine” him.
Meanwhile, PIMCO has seen more than $US50 billion in outflows over the past year, according to Morningstar.
According to two former Pimco executives with knowledge of the tensions, Mr Seidner found Pimco an increasingly difficult environment over the past 18 months and believed that Mr Gross’s behaviour had become “increasingly illogical and irrational”.
Tensions flared over Pimco’s push away from core bonds, former executives say, as newer members of the company’s investment committee became disillusioned with what they said was Mr Gross’s apparent disinterest in other assets.