Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Pimco's Gross Declares El-Erian Is 'Trying To Undermine Me'
I own multiple PIMCO funds in small measure in my tax deferred accounts. PTTRX, PAUDX, PGMDX, PDRMX, PFSDX. I find it a little distressing, then again, certain things can only be learnt in hindsight.
This is what happens when head honcho of company believes people under him are not fit to fill his shoes. Why did Bill go "out" and hire El Erian. His 17 years of running Harvard Endowment in a sustained Bull Market? NOW Bill wants us to believe his new succession plan which includes existing employees is BETTER? Why did he not reach that conclusion before hiring El Erian? It is not as if he went looking outside again for a replacement, and the folks he has selected are not exactly newbies at PIMCO.
I do not have a degree in Finance, but I have one in People in the Corporate Environment. What I'm watching for right now is for some other high profile departures at PIMCO. That would indicate people who were dissed at the time of El Erian and again overlooked now have decided to thrown in the towel. THAT would once and for all answer question whether there is a culture issue at PIMCO, and would be an indication of whether an investor should stick around after Bill hangs up his shoes, or not.
This seems like Monday night quarterbacking with very little inside information of what happened. External vs internal is always a problem facing any company and there is never a guaranteed solution. Sometimes it works, sometimes not. Not all external hires work out as you expect and the company itself undergoes changes that make some earlier decisions bad.
I remember from just a couple of years ago an article on how the PIMCO culture was one of sheer meritocracy with university like debates and challenge of ideas. This is the culture Bill Gross built. Did El-Erian fit into this? Did Gross grow senile and more autocratic as he aged? Who knows.
Even in the case of Gundlach, it wasn't clear one party was right and the other wrong. Each did what is best for them.
Not taking sides here but without knowing what actually happened inside, it is very difficult to come up with an informed opinion.
Agree that top level departures would signal a problem IF they happened especially given their location where they cannot be easily head hunted away into similar jobs without requiring relocation.
Comments
Most likely, we will see Gross departing soon for health reasons and/or to spend more time with his family.
This is what happens when head honcho of company believes people under him are not fit to fill his shoes. Why did Bill go "out" and hire El Erian. His 17 years of running Harvard Endowment in a sustained Bull Market? NOW Bill wants us to believe his new succession plan which includes existing employees is BETTER? Why did he not reach that conclusion before hiring El Erian? It is not as if he went looking outside again for a replacement, and the folks he has selected are not exactly newbies at PIMCO.
I do not have a degree in Finance, but I have one in People in the Corporate Environment. What I'm watching for right now is for some other high profile departures at PIMCO. That would indicate people who were dissed at the time of El Erian and again overlooked now have decided to thrown in the towel. THAT would once and for all answer question whether there is a culture issue at PIMCO, and would be an indication of whether an investor should stick around after Bill hangs up his shoes, or not.
I remember from just a couple of years ago an article on how the PIMCO culture was one of sheer meritocracy with university like debates and challenge of ideas. This is the culture Bill Gross built. Did El-Erian fit into this? Did Gross grow senile and more autocratic as he aged? Who knows.
Even in the case of Gundlach, it wasn't clear one party was right and the other wrong. Each did what is best for them.
Not taking sides here but without knowing what actually happened inside, it is very difficult to come up with an informed opinion.
Agree that top level departures would signal a problem IF they happened especially given their location where they cannot be easily head hunted away into similar jobs without requiring relocation.