El-Erian OUT at Pimco

Wow. Didn't see this one coming.

Mohamed El-Erian has resigned as CEO of Pimco, effective mid-March. Pretty shocking. I wonder what's behind it. He's walking away from the largest (okay, second largest as of November) mutual fund to advise the board of Allianz? It'll be interesting to see what comes out in the next couple days.

For his part, Bill Gross is remaining a class act and parting with El-Erian gracefully. It seems their friendship remains intact.

Wow.

Comments (25)

Jan 21, 2014 - 5:59pm
Vagabond85, what's your opinion? Comment below:

Long shot: role in new Egyptian government?

Array
Jan 21, 2014 - 11:33pm
IlliniProgrammer, what's your opinion? Comment below:

Yeah, PIMCO is a subsidiary of Allianz. It is no surprise that Gross is staying cordial.

My guess is that El-Erian wants to sort of go into a soft retirement. He's fifty six. His daughter turned 10 last year. He has enough money. Advising Allianz's board is as interesting an intellectual challenge as bond investing. This could be one of those "resigning to spend more time with his family" situations that's actually genuine.

Jan 22, 2014 - 4:02am
beautifool, what's your opinion? Comment below:

Didn't he become some sort of economic adviser to Obame awhile ago? Maybe to avoid conflict of interest.

Honestly though, I have been following him since the start of Bond rally and I'd say some of his remarks were overly bullish.

Jan 22, 2014 - 12:04pm
Martinghoul, what's your opinion? Comment below:

The most egregious thing about the PIMCO news isn't really El-Erian's retirement. It's the fact that Andrew Balls, the brother of the horrible, odious and utterly repugnant Ed Balls, is the co-CIO. Just as an indication of what sort of career Andrew Balls has had, until 2006 he was a journalist at the FT.

Jan 22, 2014 - 12:48pm
Going Concern, what's your opinion? Comment below:

Looks like on Andrew's official corporate profile he considers his time at the FT to be "investment experience"...guy's got balls, that's for sure.

http://www.pimco.com/EN/Experts/Pages/AndrewBalls.aspx

Side note, am I the only one who thinks he looks a little like the character of Greg Harris from Mad Men?

Jan 22, 2014 - 12:49pm
Sifaka, what's your opinion? Comment below:

El-Erian CEO of PIMCO RESIGNS BECAUSE OF HIS DAUGHTER (Originally Posted: 09/28/2014)

But wasn't he supposed to leave earlier this year?

The story is that he'd leaving to attend to his daughter who composed a list of 22 milestones he missed. He quit PIMCO and started at Allianz part time. Things is I thought all of these moves were already in play. So what's with the announcements appearing in msm

http://www.foxnews.com/us/2014/09/27/head-2-trillion-investment-fund-quits-after-daughter-lists-family-milestones/

Jan 22, 2014 - 12:52pm
whatwhatwhat, what's your opinion? Comment below:

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Jan 22, 2014 - 12:53pm
Sifaka, what's your opinion? Comment below:

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