Pimco Hires Ex-Brevan Howard Partner Sundstrom as Money Manager
Pacific Investment Management Co. hired Geraldine Sundstrom, formerly of Brevan Howard Capital Management LP, as the world’s biggest bond manager bolsters its ranks after a leadership shakeup earlier this year.
Sundstrom, 39, will join as a managing director and money manager by the first quarter, following a leave from her previous employer, Newport Beach, California-based Pimco said yesterday in a statement. She will be based in Pimco’s London office and report to Mihir Worah, one of six deputy chief investment officers named in January.
“She represents an important addition of demonstrated leadership and skill as we continue to build out our multi-asset group for the benefit of our clients,” Bill Gross, Pimco’s chief investment officer, said in the statement.
Pimco last month hired Rick Chan and Jason Goldberg as portfolio managers in derivatives and Paul McCulley for the newly created position of chief economist, reporting to Gross, 70. The firm is seeking to reassure investors over its leadership after the abrupt resignation of former Chief Executive Officer Mohamed El-Erian in January and stem a record streak of redemptions from its main fund.
Brevan Howard signaled it would shut down Sundstrom’s hedge fund earlier this year after it lost money amid a rout in emerging markets, a person with knowledge of the decision said in February. Sundstrom’s Brevan Howard Emerging Markets Strategies Master Fund declined 15 percent last year after a selloff for bonds and currencies, according to the person. Her fund, which had $2.7 billion in assets as of June 2013, fell an additional 1.6 percent in January.
Sundstrom had produced an average annual return of about 3.6 percent since 2007 when she joined Brevan Howard, Europe’s largest closely held hedge-fund firm with $40 billion of assets, according to a fund-performance report. She previously worked at Louis Bacon’s Moore Capital Management LLC for four years and before that an an investment analyst for Citigroup Inc., her registration with the U.K.’s Financial Conduct Authority shows.
Investors pulled money from the Pimco Total Return Fund (PTTRX), the world’s biggest bond fund, for a 13th straight month in May, taking an estimated $4.3 billion, Chicago-based research company Morningstar Inc. said this month. Assets fell to $229 billion as of the end of the month from a peak of $293 billion last year.
Gross is seeking to stanch redemptions, saying the fund that’s trailed 62 percent of peers over the past 12 months, according to data compiled by Bloomberg, will again rank at the top by the end of the year. Pimco is betting on a “new neutral” era characterized by global growth converging toward lower, more stable speeds and interest rates that remain below their pre-crisis equilibrium.
To contact the editors responsible for this story: Christian Baumgaertel at firstname.lastname@example.org Pierre Paulden, Josh Friedman