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Gross‚??s Mistake on Fed Taper Ripples Across Pimco Funds

Money manager Bill Gross, also known as ‚??The Bond King,‚?Ě misjudged the timing and impact of the Federal Reserve‚??s plan to scale back its asset purchases in 2013, spurring the Pimco Total Return Fund‚??s (PTTRX) biggest decline in almost two decades.

Gross‚??s Mistake on Fed Taper Ripples Across Pimco Funds (Bloomberg)

Money manager Bill Gross, also known as ‚??The Bond King,‚?Ě misjudged the timing and impact of the Federal Reserve‚??s plan to scale back its asset purchases in 2013, spurring the Pimco Total Return Fund‚??s (PTTRX) biggest decline in almost two decades. The billionaire‚??s mistake was echoed by the largest funds at Pacific Investment Management Co., including non-traditional bond offerings designed to shield investors from interest-rate moves. Pimco mutual funds that average more than $10 billion in assets trailed about two-thirds of peers in 2013, according to data compiled by Bloomberg. Only two of the 11 largest funds from the firm beat more than half of their rivals last year. Ouch!

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Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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