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  • Mark September 2018
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Bill Gross’s Losses Mounted In First Half After Loading Up On Futures

TedTed
in Fund Discussions
FYI: Bill Gross leveraged up his bond fund through the use of futures during the first half of this year, only to suffer big losses on those tied to interest rates.

Gross, who as manager of the Janus Henderson Global Unconstrained Bond Fund has struggled to generate returns and attract capital, increased his average futures exposure as much as 13-fold from January through June, according to a filing. The derivative bets may help explain the fund’s turbulence -- because while investments in futures can boost potential returns, they can also generate out-sized losses.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-09-13/gross-s-losses-mounted-in-first-half-after-loading-up-on-futures?srnd=premium

Comments

  • MarkMark
    I shudder to think what my PIMCO funds would look like if he were still in charge there.
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