Bill Gross’s Investing Secret: A Rising Market and Extra Risk

Bill Gross, founder of bond giant PIMCO, at his office in 2007 Photograph by Jonathan Alcorn/Zuma Press

It’s hard to overstate the consequences of Bill Gross’s departure from Pacific Investment Management Co. First came the withdrawals—more than $500 million from Pimco’s Total Return Exchange-Traded Fund alone—then a rating downgrade from influential fund analyst Morningstar, which cited capital outflows and uncertainty about new management. Not good.

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