You may have caught the news last week that, Bill Gross, founder of PIMCO, abruptly quit the company. Over the last year, some of the top brain talent have also fled the firm.
On top of that, the SEC is investigating the firm.
If you owned a PIMCO fund in your portfolio that we have been managing, we have made the decision to liquidate. PIMCO has had a great reputation over the last couple of decades. However, recent events make the decision to liquidate prudent.
We have used PIMCO as a bond manager. While we know the underlying bond assets within PIMCO's portfolios to be solid, we believe a mass exodus will ultimately hurt performance.
Stay tuned. This story is still unfolding.
You may want to review any other investment accounts you may have such as a retirement account to see if you are holding any PIMCO funds. If so, you may consider liquidating your PIMCO positions.
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