Bill Gross Sees ‘Much Less’ Alpha in Era of QE and Quant Trading
- Odds of signifcantly beating benchmarks have plunged, he says
- Bond legend reflects on his 48-year career in BTV interview
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Think of it as a parting shot to anyone hoping to be the next king of bonds. Bill Gross, who defined his investing career by beating benchmarks, says the era of outperformance is largely over.
“There are things to look at that still exist in the market that can generate alpha, although the probabilities of generating historical alpha in the same way are much less than they were,” Gross, who retired on March 1 after a 48-year career in financial markets, said in an interview with Bloomberg Television in Newport Beach, California.