Gross Raises Holdings of Treasuries to Highest Level Since July
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Bill Gross raised the percentage of Treasuries held in his flagship fund to 26 percent in December, the highest level since July, while warning of the inflationary risks of stimulus programs such as quantitative easing.
The world’s biggest manager of bond funds increased the proportion of U.S. government and Treasury debt in Pacific Investment Management Co.’s $285 billion Total Return Fund from 23 percent of assets in November, according to a report on the company’s website. Mortgages remained his largest holding, though the percentage was reduced from 44 percent to 42 percent, the least since October 2011. Newport Beach, California-based Pimco doesn’t comment directly on monthly changes in its portfolio holdings.