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We fired Bill Gross a few years ago, except in 401k plans where we do not have other options. The only PIMCO fund we use is Arnott's PAUIX, which is doing well this year. He is the only PIMCO manager who really does his own thing, and the fund is a real alternative play. It is a core alternative hold in most client accounts. But we have been glad to be out of Mr. Gross' and Mr. El-Erian's funds in the recent near-death experience at PIMCO. Actually, we never drank Mr. El-Erian's cool aid. There are so many good managers and fund companies out there, you really can do well in fixed-income funds without Mr. Gross (or Mr. Gundlach, either, for that matter). The loudest mouths are not necessarily the best options.
@BobC: Without much fanfare there is Kathleen Gaffney who has picked right up at Eaton Vance, after leaving Loomis Sayles. Her returns stand toe-to-toe with the boys. Regards, Ted
What about PIMIX or PDI or the other funds run by Daniel Ivascyn? I've had my retired mother in PIMIX for a few years (she needs income but has no need for capital) and have often flirted with buying PDI on a dip, but I've never quite resolved to do it, to my regret.
Gaffney is great, I owned LSBRX for a long time, but I'm fearful that her fund (like LSBRX) will be quite correlated to the stock market and won't hold up well if the stock market crashes; LSBRX crashed (and recovered beautifully) just like stocks during the 2008-9 crisis. Which is fair enough, but most people want bonds to be safe and steady.
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Regards,
Ted
Gaffney is great, I owned LSBRX for a long time, but I'm fearful that her fund (like LSBRX) will be quite correlated to the stock market and won't hold up well if the stock market crashes; LSBRX crashed (and recovered beautifully) just like stocks during the 2008-9 crisis. Which is fair enough, but most people want bonds to be safe and steady.