Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

The Rise of the Robot Bond Trader?

April 24, 2018 By Jeremy Jones, CFA

By Tatiana Shepeleva @ Shutterstock.com

For years PIMCO was driven by the investing acumen of Bill Gross and Mohamed El-Erian. After an acrimonious split with El-Erian in 2014, and unceremoniously dumping Gross the same year, PIMCO’s plan is to replace these titans of the bond industry with some algorithmic software and an office in trendy Austin, Texas. The Wall Street Journal’s Justin Baer writes:

Pimco’s mutual funds had $33 billion in net inflows in 2017, reversing a four-year stretch of client withdrawals, Morningstar said. While Pimco remains one of the world’s biggest investors, with about $1.7 trillion in assets, the firm still manages less than the some $2 trillion it oversaw at the height of the Gross era.

Mr. Roman, Pimco’s chief executive, is placing his bets on computer-driven and private-debt investing, believing those areas offer promise without veering the firm outside its traditional focus on the debt markets.

“Our strategy remains the same: to be the premier fixed-income manager in the world,” Mr. Roman said earlier this month in an interview. “But to do this we need to invest.”

Mr. Roman’s plan isn’t without risk. While most of the firm’s core bond funds are performing well, a slump could lead to questions about whether Pimco should stick to its knitting, clients and consultants have said.

The firm plans to launch a slate of investment funds driven by trading algorithms, he said, but many other initiatives are designed to give Pimco’s traditional portfolio managers an edge in finding profitable trading ideas or lowering costs.

Mr. Roman said Pimco plans to expand its current portfolio-management analytics team. Led by Ravi Mattu, who joined the firm in 2011, the group currently employs about 65 people.

“We’re turning up the volume, so to speak,” Mr. Roman said.

Read more here.

 

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Junk Bond Yields
  • Junk Bonds go Bonkers
  • The Rise of the Robot Warehouse
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • China Builds an Anti-Quad Coalition - May 27, 2022
  • There Are Tech Companies “Still Dreaming of Boundless Growth” - May 26, 2022
  • How Can the Fed Prevent Stagflation? - May 25, 2022

Search Young Research

Most Popular

  • MARKET TURNING: Canada's Housing Market Turmoil
  • BUY THE DIPS? Can You Catch a Ginsu Knife?
  • Watch Out for Your Worst Enemy
  • How Can the Fed Prevent Stagflation?
  • Job Market Survival Advice for Graduates and for Those YOU Love
  • Now You Can Own Your Vacation and It Doesn’t Have to Be a Time Share
  • BULLWHIPPED? Inventory Overhang Could Slow Growth in Certain Sectors
  • The Power of a Compound Interest Table
  • Big Banks Adopting Blockchain for Short-Term Trading
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • KRISTALLNACHT: How Well Intentioned Gun Registries Become Tools of Evil
  • Your Survival Guy: “Life on Main Street Hasn’t Been This Hard in a While”
  • Is America About to Lose Its Investments in Colombia?
  • POWER MOVE? Did Viktor Orban Just Seize Control of Hungary?
  • Americans Are Abandoning ESPN and Woke Professional Sports Leagues
  • If You Have a Plan, I Believe You’ll Get to Where You Want to Go
  • President Joe Biden’s Good Question
  • Georgia Proves All Politics Are Local
  • VIDEO: DeSantis: America “Cannot Have a Ministry of Truth”
  • Can America Cut It’s Spending in Half? YES! It’s Been Done Before

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.