Don’t ever accuse Bill Gross of being anything but transparent. Not only did he shave the mustache, but he now has the World’s Largest Mutual Fund – Pimco Total Return – looking more aligned with his market commentary.
PIMCO has shifted to a short position in U.S. government-related debt in the world’s largest bond fund, while also raising cash holdings in a sign of the asset manager’s serious concerns about the U.S. fiscal outlook.
The portion of PIMCO’s $236 billion Total Return Fund held in U.S. government debt, including U.S. Treasuries, was -3 percent of total assets in the fund as of March, down from zero in February, the firm’s website showed.
Cash equivalents, securities with maturities of less than a year, rose to 31 percent of the fund’s assets compared with 24 percent in February.
He’s been railing against US debt for quarters now, it appears he’s finally turned the proverbial ship in the right direction.