Of Bonds and Bitchiness

“Alyssa, I’m sorry I called you a gap-toothed bitch. It’s not your fault you’re so gap-toothed.”
– Mean Girls

One of the biggest stories of the week was the ongoing fallout from the Mohamed El-Erian / Bill Gross break-up at PIMCO. In the wake of Greg Zuckerman’s incredible story at the Wall Street Journal, it had become the talk of the industry, forcing many investors to think twice about their allocations to the firm’s products.

My friend Jenn Ablan, a Reuters reporter who covers all the Bond Kings for Reuters came away from a call with Gross that contained some wild accusations about the Zuckerman article and the whole thing just blew wide open the other day.

The question for investors everywhere is whether or not PIMCO is in disarray or if its vaunted decision-making process can be trusted anymore. Institutions, individual investors, professional advisers and money managers of all kinds have allocated hundreds of billions to the firm. The now-public issues about Gross’s ego and monomania have led to a public discussion to this effect.

My own take is that we will never know about all of the dynamics between Gross and El-Erian – both of whom I have a great deal of respect for as investors and thinkers – but that we probably shouldn’t rush to judgment over a few errant quotes and comments during an emotionally charged time for both of them. Also, as others have posited, bull markets don’t end pleasantly – especially bond bull markets that had run on for thirty years. The aftermath at PIMCO could never have been congenial after three decades of downhill marathoning. 

Below are some of the better musings on the topic:

Exclusive: Pimco’s Gross declares El-Erian is ‘trying to undermine me’ (Reuters)

It’s time for Bill Gross to retire (Reuters)

Conflicting claims worry Pimco investors (FT)

PIMCO’s Got Bigger Problems Than The Tabloid Drama We’ve Been Reading About Lately (BusinessInsider)

BTW, Barry and I have promised our employees and ourselves not to split so acrimoniously if, heaven forbid, we ever felt the need to (we don’t, I’m writing this blog post wrapped in his arms at our getaway cottage in New England).



This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. sex commented on Sep 18

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  2. bitcoin loophole review commented on Sep 29

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  3. bitcoin evolution commented on Oct 02

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  4. Digital transformation commented on Nov 18

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  5. best site to buy dumps commented on Nov 22

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  6. regression testing meaning commented on Nov 28

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  7. acl board dimensions commented on Dec 30

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  8. KIU commented on Jan 05

    … [Trackback]

    […] Here you will find 5016 more Information on that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]

  9. APC P8VNTG manuals commented on Jan 21

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2014/03/09/of-bonds-and-bitchiness/ […]