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Paul McCulley steps down as Pimco's Chief Economist.
I did a rough estimate the other day based on fund flows. Using the management fee for Gross's old fund, which may not be a totally accurate basis for estimating across the board, they've lost something in excess of $400 MM of annual management fees since Gross' departure. I know they save a lot of that because they don't have to give Gross $200MM bonuses anymore, but I guess they're still in the hole by a decent amount and if outflows continue they're going to wonder the same thing the Germans would have wondered if Greece left the Euro and defaulted on its debts.
He was on a contract that required him to work just 100 days a year as Pimco's "chief economist." By the time Gross left, his contractual obligations probably had already been satisfied, and there was no point in coming in "to help" those who had disposed of his buddy.
Yes, he will be missed. Always like his concise and clear writing - quite an opposite to Bill Gross. Wonder what will be come of Pimco. Several Pimco funds are still available in my 401(K) plan.
Comments
Regards,
Ted
http://www.businessinsider.com/paul-mcculley-leaving-pimco-2015-2
My sense is he came back to help Gross, help legacy PIMCO.
I'm actually surprised he stayed as long as he did after Gross left.
Thought his departure would have been concurrent.
Maybe he too was caught by surprise?
Wish him well and will look forward to his future endeavors.
c
“My mission here is complete. [...] Pimco will always be Camelot in my heart.”
http://www.ft.com/intl/cms/s/0/5d8471b6-b901-11e4-a8d0-00144feab7de.html?siteedition=intl#axzz3SE6LVfLA