Gross Overhauls Dialynas’s Unconstrained Fund
This article is for subscribers only.
Bill Gross overhauled the Pimco Unconstrained Bond Fund after replacing Chris Dialynas as manager, taking control of Pacific Investment Management Co.’s best-selling alternative to traditional fixed income.
The $25.6 billion fund jettisoned 30-year Treasuries and most of its agency mortgage bonds, increased a wager on corporate debt through credit-default swaps, and ended bets that the U.S. dollar would appreciate against the Chinese yuan, according to data on Pimco’s website. The effective duration, a measure of sensitivity to interest rate changes, more than doubled in December, when Gross assumed control of the unconstrained fund.