Gross, speaking in an interview with Bloomberg View’s
“For some reason still unbeknownst to me, they didn’t think that was a good idea and they did fire me,” Gross, who managed the world’s largest bond fund until his unexpected departure on
Gross stunned the investing world with his surprise exit, after deputies including now-group Chief Investment Officer
“If you don’t have a leader looking out for mistakes and berating those that make significant mistakes, then what have you? You’ve got a loose company that ultimately is not doing a service to its clients,” Gross said in the interview.
“A leader has to be tough,” he said. “If you sit around a table and you congenially look for a consensus-type of outcome, you’re in trouble. You can’t manage money that way. At some point somebody has to step in and say, ‘We are going in this direction,’ and I viewed that as my job and I think I did it well.”
On at least three occasions in the past 13 months, Gross offered to rescind some responsibilities and take on a smaller role. In August, he proposed stepping back if senior leaders agreed to his demand that two money managers, “Mr. X” and “Mr. Y,” be fired for talking to the media.
By September, Pimco executives were considering his ouster. Rather than suffer the humiliation of being fired, Gross pre- empted them with an announcement from Janus that he was joining.
Gross had managed the
The fund stumbled when the Federal Reserve hinted it would unwind stimulus measures, sparking client redemptions. By October, it had ceded the title of biggest mutual fund to an offering from
Because of its size, the fund’s trades were always large, which attracted attention, so “the street would always know what Pimco was doing,” Gross said in the interview today.
“Any trade we did obviously had to be an enormous size relative to the rest of the market and we affected the markets,” he said. “We paid a price for that, in terms of in and out, and ultimately in terms of the street being well- informed and in some cases working against us.”
The relative small size of Gross’s new vehicle at Janus, which has
Gross said he visited a neighbor, a retired
“I said, ‘what’s that?’ and he said: ‘watch your back,’” Gross said.
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