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Gross Vows This Time Different as El-Erian Leads Equities Push

Bill Gross, who runs the world’s biggest mutual fund, takes a seat in a conference room and makes a confession. Overlooking the ocean at the headquarters of Pacific Investment Management Co., Gross describes missteps that doomed his bond firm’s experiment with equities in the mid-1980s.

At meetings where Pimco set its strategies, Gross’s bond traders overwhelmed the firm’s handful of equity managers, shooting down their bullish arguments promoting stocks. With limited freedom to pursue their own investing ideas, the equity managers quit after about two years, Bloomberg Markets magazine reports in its August issue.