PIMCO's Gross Becomes Master of Short-Market Mutual Fund Universe (PSTIX)
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Bill Gross should change his last name, maybe to Champ, Winner, Boss, or Best.
But not Dandy.
Mr. Gross, overseer of the largest bond mutual fund the world has ever seen, is carving out a name for himself shorting stocks...in a fund that has actually gained as markets have declined.
Gross' Pimco Stocksplus TR Short Strategy Fund (Nasdaq: PSTIX) has accelerated three-percent per year over the last five years, according to Bloomberg today.
"So what? We just went through one of the most disastrous, tumultuous, destructive, dire, tragic, cataclysmic (are we missing any) financial climates the globe has seen in decades," you might be saying. Which is true, but it wasn't that way in 2006 - 07, when Gross was still averaging a decent return amid a slap-happy bull market.
That performance has landed him at the top of all bear-market mutual funds, says Morningstar, Inc. (Nasdaq: MORN).
Morningstar said that after profiting from the decline of the markets in 2008, most funds lost an average of 34 percent in 2009 and 24 percent in 2010. Additionally, the stock-short mutual funds have fallen an average of 10 percent per year over the last decade and 13 percent over the last five-years.
So, yeah, Gross knows what he's doing.
Gross started the fund in 2003 to provide "inverse exposure" to the market with the use of specific derivative strategies and leveraging.
The fund settled 0.24 percent lower yesterday.
But not Dandy.
Mr. Gross, overseer of the largest bond mutual fund the world has ever seen, is carving out a name for himself shorting stocks...in a fund that has actually gained as markets have declined.
Gross' Pimco Stocksplus TR Short Strategy Fund (Nasdaq: PSTIX) has accelerated three-percent per year over the last five years, according to Bloomberg today.
"So what? We just went through one of the most disastrous, tumultuous, destructive, dire, tragic, cataclysmic (are we missing any) financial climates the globe has seen in decades," you might be saying. Which is true, but it wasn't that way in 2006 - 07, when Gross was still averaging a decent return amid a slap-happy bull market.
That performance has landed him at the top of all bear-market mutual funds, says Morningstar, Inc. (Nasdaq: MORN).
Morningstar said that after profiting from the decline of the markets in 2008, most funds lost an average of 34 percent in 2009 and 24 percent in 2010. Additionally, the stock-short mutual funds have fallen an average of 10 percent per year over the last decade and 13 percent over the last five-years.
So, yeah, Gross knows what he's doing.
Gross started the fund in 2003 to provide "inverse exposure" to the market with the use of specific derivative strategies and leveraging.
The fund settled 0.24 percent lower yesterday.
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William H. Gross, Pacific Investment Management Company, LLC (PIMCO), Morningstar, Inc.Sign up for StreetInsider Free!
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