StockTwits Banter: Reactions to the Bill Gross Departure

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StockTwits Banter: Reactions to the Bill Gross Departure

“Bond King” Bill Gross shocked the bond market Friday by announcing that he was leaving PIMCO–the company he founded in 1971 and grew into an international bond powerhouse–to manage a total return bond fund for mutual fund manager Janus Capital.  This comes after months of internal squabbling that saw Gross’s former right-hand man, Mohamed El-Erian, leave PIMCO allegedly due to personality conflicts with Gross.

It’s too early to say what this means for PIMCO . . . or for Gross himself.  But I gave my initial thoughts to Business Insider’s Linette Lopez this morning:

“When you bought the PIMCO funds that Gross managed you were buying the manager,” said Charles Sizemore, of Dallas-based Sizemore Capital Management. “That was your sleep at night assurance right there — that you had Bill Gross managing your money.”

Gross’s performance has slipped in recent years; we will never know the extent to which his personality issues with his staff affected his performance.  But it does raise an interesting thought.  Shorn of executive management responsibilities and allowed to trade bonds in peace, might Gross’ performance make a comback?

As Lopez continued, “He’s getting up there in age and he doesn’t need the money, and he doesn’t need the prestige,” Sizemore pointed out. “He just wants to be left alone to trade bonds.”

Gross’ departure set the Twittersphere ablaze:

Question: If you had funds at PIMCO, will you keep them there or follow Bill Gross to Janus? #BillGross $BOND $BONDS

— Charles Sizemore (@CharlesSizemore) Sep. 26 at 08:52 AM

@CharlesSizemore increasingly erratic behavior ….might start the search over

— Greg Harmon (@harmongreg) Sep. 26 at 08:55 AM

@harmongreg You have to wonder how he’ll do as a pure manager again without all of the executive responsibilities. Should be interesting.

— Charles Sizemore (@CharlesSizemore) Sep. 26 at 09:00 AM

@harmongreg Because you’re right, his erratic behavior made it look like he was completely falling apart.

— Charles Sizemore (@CharlesSizemore) Sep. 26 at 09:01 AM

$JNS up 17% #premarket on the Bill Gross news. I guess they haven’t looked at $BOND and all those outflows lately?

— Paul La Monica (@lamonicabuzz) Sep. 26 at 07:36 AM

Huge volume on the Bill Gross-managed $BOND fund, but hasn’t really collapsed with his departure: http://stks.co/i16rB

— John Kicklighter (@johnkicklighter) Sep. 26 at 11:31 AM

NEW POST: SPY Technical Update and Gross Assessment http://stks.co/g16yO $SPY $BOND $MINT $JNS

— David Fabian (@fabiancapital) Sep. 26 at 11:11 AM

I’ll be very curious to see what happens with PIMCO inflows/outflows over the next month. $BOND $BONDS

— Charles Sizemore (@CharlesSizemore) Sep. 26 at 09:11 AM

@PaladinRegistry @CharlesSizemore Neither. Will be avoiding both. If held total return would leave but if have other funds keep.

— Michael Sicuranza (@MSicuranza) September 26, 2014

@CharlesSizemore Move them to @DLineCap — Aaron Levitt (@AaronLevitt) September 26, 2014

Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management. Click here to receive his FREE weekly e-letter covering top market insights, trends, and the best stocks and ETFs to profit from today’s best global value plays.

This article first appeared on Sizemore Insights as StockTwits Banter: Reactions to the Bill Gross Departure