PDI

BWG

Last evening, I had posted that I was looking to add to PDI on a dip. The NAV performance of the fund has been good (I think better than the open-ended version PIMIX) and increases in the discount had represented good buying opportunities. This morning, with the news about Gross, I was anticipating buying PDI on a pullback. However, I have had a chance to rethink this more and am holding off on any buys of PDI. A big reason is that Gross is one of the biggest holders of PDI. I don't know whether he will now liquidate his holdings in PDI but his previous purchases had often acted as a floor on the market prices of PDI.

According to Yahoo, he holds 1,195,534 shares of PDI
http://biz.yahoo.com/t/48/5911.html

According to M*, the largest institutional holder of PDI is Morgan Stanley Smith Barney, with 912,132 shares.
http://investors.morningstar.com/ownership/shareholders-major.html?t=PDI&region=usa&culture=en-US&ownerCountry=USA

GLTA

scott

Interesting point. I do think that Gross is so woven into Pimco that there is kind of a Jenga aspect to this, where pulling too many Gross-related blocks might have real implications on other Pimco funds and the markets themselves.

finder

From Bloomberg:

Pacific Investment Management Co. is likely to name Daniel Ivascyn chief investment officer of the $1.97 trillion bond firm after Bill Gross left to join Janus Capital Group Inc. (JNS), according to a person familiar with the matter... Dan Tarman, a spokesman for Newport Beach, California-based Pimco, didn’t immediately respond to an e-mail seeking comment.

So I wonder whether he will have enough time to dedicate to PDI?...

finder

For positive comments on PDI see http://seekingalpha.com/article/2524355-bill-gross-pimco-exit-creates-unprecedented-value-in-cefs?uprof=11

davidrmoran

I bought more before this dip, sigh, and am going to add to it as well, fwiw.