Bill Gross says the decision to retire was his
- Notes that his bond portfolio outperformed (including PIMCO
- "Maybe I should have stuck to 'constrained'"
- Blames Treasury-bund trades for underperformance
- The hedge fund model has been broken for a long time, managers take too much with not enough diversification
- Savers are at risk in current environment
- Japan hasn't been inflationary in the way expected from negative rates
- You have to get interest rates above inflation to create a positive environment for savers
- Financial markets have become so sophisticated but to expect Sharp ratios to be higher than 1 is wrong
- I'm still a believer in active management but the advantage of passive is low fees and that's tough to overcome in an era of low rates
This is Gross' swan song after announcing his retirement today. There was nothing particularly notable in his comments.
