Investors, both individual and institutional, have lost faith in Bill Gross. Bill Gross was the darling of bond fund managers when he was with PIMCO. An ugly divorce from PIMCO, as well as a nasty spousal divorce, and with time, it’s gotten really ugly (this includes the marital divorce). Gross now runs the Janus Henderson Global Unconstrained Bond Fund. The fund has suffered approximately $60 million of redemptions in December alone, as per reporting from journalists at Morningstar, the Wall Street Journal, and Bloomberg. The total outflow, by our best estimation, appears to be approximately $1 billion.
Twenty or so years ago, I met Bill Gross at an event at the headquarters for PIMCO in California. I found him obnoxious and full of himself. To be polite, he rubbed me and many others in the small gathering the wrong way with “I’m too busy to be here, but they said I needed to show face to keep you boys happy.” Well isn’t that rather brash?
At the firm, we do not use mutual funds, and we want nothing to do with Bill Gross. Long before TrueStar Advisors, the same held true for my personal asset allocation preference. That is not to say that he didn’t do well by his investors, because he did. But my gripe has always been with those who grandstand and think an awful lot of themselves. Investors have pulled money for 10 consecutive months since the February peak, in part amid misplaced bets by the Janus fund that rates on U.S. Treasuries and German bunds in 2017, underperforming more than 80% of his peers.
That’s not good.