Posts filed under “Mutual Funds”

Bill Gross Defends His Record

Last year was a time of change and controversy for Bill Gross: His unplanned exit from Pacific Investment Management Co. in September, a whisper campaign before the palace coup, a new job at Janus Capital.

Amid all this, Gross is most upset about one thing: Despite 40 years at the top of the fixed-income world, he believes his recent track record has been misunderstood or misrepresented.

After we published a column last year on his compensation at Pimco, he wrote me to complain that his performance numbers were much better than reported, especially for Pimco’s flagship Total Return Fund (PTTRX), the world’s biggest bond fund.

He wanted to know if Bloomberg was willing to look into the data and “set the record straight.” Since we splashed his 2013 bonus of $290 million all over the Internet, it seemed only fair to do so.

Hence, today’s column deals with three things: Total Return Fund’s performance during the past few years, the performance of the five closed-end funds Gross managed at Pimco, and the strength of Pimco as an asset gatherer, driven in large part by Gross, particularly since 2011.

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Category: Fixed Income/Interest Rates, Investing, Mutual Funds

10 Truths Mutual Fund Firms Won’t Admit

Wow: 10 things mutual fund companies won’t say 1. “Cheap funds often outperform pricey ones.” 2. “We can’t beat the market.” 3. “When skill fails, we just double (or quintuple) our odds.” 4. “People aren’t buying our product…” 5. “…except when we pay them kickbacks.” 6. “Hedge funds are our idols.” 7. “Our boards are…Read More

Category: Mutual Funds

Category: Mutual Funds, Think Tank

Free Lunch Over for Money-Market Funds

Of all the outrages endured during the financial crisis, perhaps the most perplexing involved money-market mutual funds. In an example of moral hazard writ large, this uninsured risk instrument — with $2.57 trillion in assets — somehow became too big to fail. Five years later, the Securities and Exchange Commission is finally taking steps to…Read More

Category: Mutual Funds, Really, really bad calls, Regulation

Dumbest Investing Ideas of 2014

The Worst Investing Ideas I’ve Heard This Year (so far) Barry Ritholtz Washington Post, July 5, 2014     As the second quarter comes to an end, my top 10 list of dumb investment ideas is filling up. All of these would be fairly foolish in any year. (Feel free to explain to me why…Read More

Category: Investing, IPOs, Mutual Funds, UnGuru

The Mutual Fund Swap

This was written by Kris Venne, the Certified Financial Planner in our Asset Management group:   Its 3:35pm on a Wed., your phone rings – it is your “advisor” over at MerFargonley. Conspicuously its pretty close to month end, say March 24th. “Hey Mike! Hows it going? How’s Sandy (your wife)? How about little Mikey?”…Read More

Category: Investing, Mutual Funds, Really, really bad calls

Skill vs Cost: The Myth of the Successful Money Manager

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managed funds

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Category: Digital Media, Hedge Funds, Mutual Funds

Shorter WSJ: Beware Target Date Funds

Missing the Target Source: WSJ   You may have missed the WSJ’s takedown on Target-date funds this weekend. Its a must. The idea of target date funds are a form of auto-pilot that automatically shifts allocations into more bonds less stocks as the investor ages. Target date funds now manage about $550 billion dollars. The…Read More

Category: 401(k), Investing, Mutual Funds

Investors Continue to Pick ETFs over Active Funds

Source:   This was part of theme of my presentation this week — while equity markets in general have seen huge outflows, ETFs in general — and Vanguard in particular — have seen large inflows .  . .    

Category: ETFs, Investing, Mutual Funds

Finding Mutual Fund Managers Who Beat the Market

Yesterday, I referenced Merrill Lynch research that showed only 39% of fund managers beat the S&P500 last year. This morning, the WSJ references Goldman Sachs research — it shows something similar. Their data showed 65% of U.S. large-cap stock funds trailed the benchmark index net of fees. (5 year average = 66%). When they looked…Read More

Category: Investing, Mutual Funds