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Nov 21, 2014

Bill Gross of Janus to manage $500 million for Soros fund

By Jennifer Ablan

(Reuters) – Bill Gross just got a huge vote of confidence from legendary investor George Soros.

Soros Fund Management LLC, which Soros chairs, has invested $500 million in an account run by Gross at Janus Capital Group Inc, the Denver-based firm said on its website on Thursday.

Nov 20, 2014

Gross tweets he’s ‘honored’ to manage $500 million account for Soros Fund Management

By Jennifer Ablan

(Reuters) – Bill Gross, of Janus Capital Management tweeted on Thursday that he was “honored” to manage a new unconstrained strategic account totaling $500 million for Soros Fund Management.

According to Janus’ website, Quantum Partners LP, a private investment vehicle managed by Soros Fund Management LLC, “has invested in a separate account managed by Bill Gross.”

Nov 20, 2014

Gross tweets he’s ‘honored’ to manage $500 mln account for Soros Fund Mgmt

Nov 20 (Reuters) – Bill Gross, of Janus Capital Management
tweeted on Thursday that he was “honored” to manage a
new unconstrained strategic account totaling $500 million for
Soros Fund Management.

According to Janus’ website, Quantum Partners LP, a private
investment vehicle managed by Soros Fund Management LLC, “has
invested in a separate account managed by Bill Gross.”

Nov 20, 2014

Investors overpaying for yield after years of low rates

NEW YORK (Reuters) – Six years of interest rate suppression by the U.S. Federal Reserve has driven up prices for high-yielding assets and forced investors searching for income to overpay for everything from junk bonds to stocks that pay big dividends, top money managers told the Reuters Global Investment Outlook Summit this week.

“The high-yield market is sort of in a bubble and sooner or later there will be a price paid for that,” said Carl Icahn, the billionaire investor who said he owns credit default swaps on high yield debt against the 5-year U.S. Treasury note. That means he’s essentially shorting high yield debt while going long on the U.S. five-year note. “We think the risk-reward is great in that CDS,” he said.

Nov 19, 2014

Peters describes Fed approach to hikes as ‘later, lower, longer’

NEW YORK (Reuters) – Greg Peters, who helps manage more than $534 billion in assets as senior portfolio manager at Prudential Fixed Income, a unit of Prudential Investment, said on Wednesday the Federal Reserve will raise benchmark interest rates later in 2015 and more gradually than many believe.

“My operating premise, once again, is really later, lower, longer,” Peters told the Reuters Global Investment Outlook Summit in New York. “If anything, any movement by the Fed will not be in the middle half of the year, but later than that.”

Nov 18, 2014

High returns keep DoubleLine’s Padilla in EM corporates

NEW YORK (Reuters) – Emerging market debt will be a safer bet than equities in those developing countries, said DoubleLine Capital’s director of emerging markets fixed income Luz Padilla.

Returns for emerging market debt could reach into the high single digits for the next 12 months, said Padilla, a level she said could beat U.S. investment-grade returns and even U.S. high-yield returns, speaking at the Reuters Global Investment Outlook Summit in New York on Tuesday.

Nov 17, 2014

Icahn expects major stocks correction in 3 to 5 years

Nov 17 (Reuters) – Carl Icahn isn’t forecasting a dramatic
stock market drop quite yet, but the billionaire investor is
still bracing for an equity sell-off in the next three to five
years, he told Reuters on Monday.

“I am still concerned that one day you’ll see a break like
you had a few weeks ago,” Icahn said at the Reuters Investment
Outlook Summit in New York on Monday, “but it won’t come back.”

Nov 13, 2014

For billionaire Warren Buffett, P&G’s tide has crested

NEW YORK, Nov 13 (Reuters) – Procter & Gamble Co.,
one of Warren Buffett’s top portfolio holdings, is about to lose
the billionaire’s influential backing at a time when it appears
the company’s own fortunes have peaked.

Thursday’s agreement by Buffett’s Berkshire Hathaway Inc.
to turn over the $4.7 billion in shares it owns in the
world’s largest consumer products company in exchange for P&G’s
Duracell battery business comes one day after P&G shares hit a
life-time high.

Nov 13, 2014

Pimco flagship fund slightly reduces U.S. government holdings in Oct.

NEW YORK, Nov 12 (Reuters) – Pimco’s flagship Total Return
fund, whose long-time manager Bill Gross unexpectedly departed
on Sept. 26, ended October with a slight decrease in U.S.
government-related holdings and a slight increase in
mortgage-backed securities.

It was the first look into a full month’s holdings under the
new three-person management team — Scott Mather, Mark Kiesel
and Mihir Worah — since Gross’ exit.

Nov 11, 2014

Pimco could withstand extra $300-350 billion outflows over two years: Morningstar

NEW YORK (Reuters) – Pacific Investment Management Co. can withstand additional outflows of approximately $300-350 billion over the next two years before its portfolio management operation is impaired, according to research firm Morningstar Inc. on Tuesday.

Pimco is struggling to stem redemptions after the unexpected departure of co-founder Bill Gross on Sept. 26, an event that has triggered another round of speculation in the bond market over leadership stability and a possible separation from its parent Allianz SE.