PIMCO to Bleed as Much as $60 Bilion Amid Gross Exit

FOX Business Network's (FBN) Senior Correspondent Charlie Gasparino reports that "senior PIMCO executives are preparing for as much as $60 billion of investor cash leaving the Total Return fund alone" due to PIMCO co-founder Bill Gross' departure. After the announcement of co-founder Bill Gross leaving "Investors withdrew more than $500 million from the Total Return fund."

Notably traders have already been buying the stock of funds likely to get inflows as a result of the news. Some of those names include: Janus Capital (NYSE: JNS) (where Gross is headed), Oaktree Capital Group (NYSE: OAK), Legg Mason (NYSE: LM), BlackRock, Inc. (NYSE: BLK), AllianceBernstein (NYSE: AB), Franklin Resources (NYSE: BEN), Invesco Ltd. (NYSE: IVZ).

Excerpts from the report:

On whether PIMCO braces for as much as $60 billion in redemptions after Bill Gross' exit:

"In the wake of Gross's departure, senior PIMCO executives are preparing for as much as $60 billion of investor cash leaving the Total Return fund alone, advisers say."

On whether PIMCO received more than $500 million in redemptions on Friday:

"Investors withdrew more than $500 million from the Total Return fund on Friday, but with some purchases it's unclear how much money ended up flowing out of the fund, advisers with first-hand knowledge of the matter tell Fox Business. The behind-the-scenes concerns by senior management are in stark contrast to public comments made by PIMCO executives including chief executive Douglas Hodge, who in one report said there is a widespread sense of comfort inside the firm now that Gross-a polarizing figure-was gone."

On whether Bill Gross had increased cash positions:

"Financial advisers say PIMCO is spreading the word it has plenty of liquidity, meaning it can easily meet redemptions. Gross had built up the fund's cash position increasing it to tens of billions of dollars in anticipation of higher interest rates and a possible decline in bond prices, and possibly the investor unrest with his departure. A spokesman for Gross had no comment."

On PIMCO Friday blasting " It's the End Of The World As We Know It":

"At the end of the day on Friday, on the trading floor at PIMCO's New York City office, executives blasted the Paul Simon classic "50 Ways To Leave Your Lover," and REM's "It's The End Of The World As We Know It."

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