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El-Erian Exit Is Pimco Distraction as Gross Saves Legacy

Bill Gross, in an investment outlook in April entitled “Man in the Mirror,” questioned whether he was truly a great investor as he pondered his legacy in a new era of shrinking bond returns.

Almost a year later, his largest fund, the $236 billion Pimco Total Return, is trailing rivals, prompting clients to pull money for 10 straight months. On top of that, the 69-year-old is entangled in an ugly split from his former heir apparent Mohamed El-Erian, 55, with allegations of phone surveillance and public humiliations, that has painted a picture of Gross as an autocratic leader struggling to maintain his composure.