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)
Jumping with a good track record? Can't really see how bonds (developed at least) can continue to perform in the next few years.
Perhaps Gross' denial of the bond bubble pushed him over the edge?
Long shot: role in new Egyptian government?
Wonder how this will affect PIMCO and its AUM...
Given that PIMCO saw about $40B walk out the door and has seen 8 consecutive months of outflows I'd say it can only get worse from here as people continue to reduce their bond exposure.
one of the steps to restructure PIMCO for post-gross era
15 years writing papers & articles can get old...maybe plans for a Kashkari-like run at government
theyve been branching into equities and alternatives pretty steadily -- theyre not a pure bond shop anymore
PIMCO's performance the past year has been abysmal. No wonder they cancelled full-time on-campus recruiting at the top business schools.
I heard that was just at Wharton, not HBS or Stanford.
;)
their hedge fund performs pretty well and consistently
Ebbs and flows, kids. The waters of the corporate oceans are filled with the blood of the washed up has-beens. Nothing to see here folks, just bizness as usual. Just wait a few weeks and no one will even remember his name.
Nice one, Dick.
You guys are aware that PIMCO is owned by Allianz, right?
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.
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.
It's very simple, IMHO, and the timing isn't a coincidence. El-Erian likes to get paid a lot, which, quite clearly, wasn't going to happen this year, in light of PIMCO's performance/outflows last year. Et voila.
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.
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?
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/
u r dumb
Care to elaborate
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