Bill GrossFor years considered a major force in the fixed income market, it is withdrawn. He does this to concentrate on the management of his personal assets and dedicate himself to his foundation. The exit will be effective on March 1, when it has not been four years since his jump to the British fund manager Janus Henderson. The announcement comes at a difficult time for the debt market, that drag a poor return for investors.
Gross has already left Pimcor, the debt management firm that helped create, in September 2014, in full tumult in the company for the investors' getaway. At that time the name of the "king of bonuses" was linked to Janus Capital. He put himself in front of a fund created to his measure, to make it grow. He was very small compared to the one he managed for the subsidiary of the Allianz group.
The financial manager retires after more than four decades in the industry, which he constantly reinvented. Pimco was founded in 1971, where he was the main investment strategist. "I've always tried to put the clients' interest first," he says in the farewell note, thanking them for their "trust and support." "I learned very early that without customers there is no brand," he adds.
The strength of the economic recovery in the United States and the good performance of Wall Street reduced the attractiveness of the debt market. The withdrawal of monetary stimuli by the Federal Reserve made it more difficult. Not even the periods of volatility experienced at the beginning and end of last year helped to give it a boost, turning them into a refuge.
The annual return on Janus was less than 1%, far from the returns that led him to fame in Pimco. "I leave this port to another destination of great hopes, the sunny sky and the calm water," he concludes. Bill Gross, 74, has an estimated net worth of around 1,500 million dollars (about 1,300 million euros) for the magazine Forbes. He invested 700 million dollars in the fund.
That personal commitment was not able to attract customers, who saw how Gross was left behind compared to their peers as their bets did not end. This led investors to request the return of the funds entrusted to them, which placed the assets of the investment vehicle below 1,000 million, compared to 2,240 million at the beginning of 2018.
Despite this succession of strategic setbacks, Wall Street is considered one of the greatest investors of all time. As they say from Morningstar, no one has made more money for their clients than he does in the fixed income business. Gross knew, in any case, that his time was limited to show that he could be better than the market and its competitors.