Bill Gross Embraces Government Debt
After lagging last year, he loads up on Treasuries and municipal bonds
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Bill Gross saw investors pull $5 billion out of his Pimco Total Return Fund last year when a bad bet against Treasury bonds led the fund to underperform its peers. Now he’s reversing course.
Gross increased the proportion of U.S. government debt in the $244 billion Total Return Fund to 30 percent of assets in December, the highest since November 2010, according to a report placed on the company’s website on Jan. 11. Newport Beach (Calif.)-based Pimco doesn’t comment directly on monthly changes in its portfolio holdings.