Bill Gross's very pricey, heavily loaded bond fund is not doing so well. Gross admits he was just wrong when he got out of US Treasurys....
During an interview at Pimco's Newport Beach, Calif., headquarters, Mr. Gross, manager of Pimco's Total Return Fund, the world's biggest bond fund, acknowledged that his decision to sell all of the fund's Treasury holdings in February, and then use derivatives to place wagers against government-related bonds in March, was a "mistake."
"We try to be very intellectually honest and honest with the public," Mr. Gross said.
For months, Mr. Gross has taken highly visible public positions against owning Treasurys, comparing owners of government bonds, in one instance, to frogs being slowly boiled alive, unaware of the dangers of owning U.S. debt.
Since his moves, the U.S. Treasury market has embarked on one of the most remarkable rallies in recent memory.
Expense Ratio: With its 0.91% expense ratio and heavy front end load fee of 3.75%, PIMCO Total Return is expensive. But when you’re a Wall Street icon like Bill Gross, managing a fund can command a higher cost due to your star power. That said, although PRIMCO Total Return Cl A carries Morningstar rating of 4 stars, there are cheaper and better performing funds in the category if you want to shop around for a less glamorous bond mutual fund investment.
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