“A quick look at Pimco's Total Return Fund shows the top 5 positions are all Fannie Mae and 40% of the fund is in mortgages,” writes Mish Shedlock, commenting on Bill Gross’ bizarre letter last week calling for the president to jump in and bail out mortgage companies.
The Total Return Fund, Gross’s flagship bond fund, has maintained a depressing 3.83% annual return since 2005… one that could easily be beaten by a simple high-yield savings account or CD. Of interesting note, Morningstar rates it a 5-star fund.
“The logical conclusion is that Bill Gross is overweight mortgages and wants a taxpayer bailout of Pimco,” suggests Mish.
And isn’t this ironic? Robert Merton, co-founder of the Long-Term Capital Management Fund, has said he will be re-entering the asset management business and will once again run his own hedge fund. Merton, a Nobel Prize winner, made this announcement on the ninth anniversary of the LTCM crisis, which he himself helped ignite. Good timing, Bob.
The Total Return Fund, Gross’s flagship bond fund, has maintained a depressing 3.83% annual return since 2005… one that could easily be beaten by a simple high-yield savings account or CD. Of interesting note, Morningstar rates it a 5-star fund.
“The logical conclusion is that Bill Gross is overweight mortgages and wants a taxpayer bailout of Pimco,” suggests Mish.
And isn’t this ironic? Robert Merton, co-founder of the Long-Term Capital Management Fund, has said he will be re-entering the asset management business and will once again run his own hedge fund. Merton, a Nobel Prize winner, made this announcement on the ninth anniversary of the LTCM crisis, which he himself helped ignite. Good timing, Bob.
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