Overview of PIMCO

Over the years, Pacific Investment Management Company or PIMCO has been the global leader in fixed income or bond management. Their Total Return Bond Fund was the largest mutual fund in the world with roughly a quarter of a trillion dollars until ceding to Vanguard late last year. It was the standard by which competitors were judged and dominated the 401K market. Although now owned by giant insurer Allianz, PIMCO has essentially been an autonomous unit since the sale.

With almost $2 trillion in assets under management (AUM), the firm didn’t grow so big because they were mediocre. While I have never been a big fan of their equity funds with good reason, their fixed income prowess was the envy of Wall Street for years and perhaps even decades.

Bill Gross – Rock Star, Media Darling & King

Along the way, PIMCO’s performance has turned its founder, Bill Gross, into a media darling and rock star in the industry. Whenever there is a Fed meeting, major economic announcement or serious geopolitical event, you can count on the media outlets lining up interviews one after the other. To be fair, Bill Gross has been the superstar driving the firm’s performance so his status had been well deserved and warranted.

There are few valid comparisons to Bill Gross in the investment industry because it’s unusual for a “master of the universe” in the investment world to have also been the firm’s founder and remain in charge of the investment process. Names like Warren Buffett (another article coming later this month); Peter Lynch and Steven Cohen (SAC) come to mind.

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Editor’s Note: Be sure to check out Paul’s Blog: Invest For Tomorrow

Paul Schatz

Paul Schatz is President and Chief Investment Officer of Heritage Capital, LLC, in Woodbridge, CT. Paul developed and manages all eight of the firm’s currently offered investment programs.

Paul brings an increasingly high tech approach to investing by enhancing all of the firm’s investment models and data monitoring using sophisticated computer programs. Heritage Capital is a Registered Investment Adviser.