Unstructured Finance

Money manager titans who can’t wait until 2014

The year can’t end fast enough for some of the world’s biggest investors.

Bill Gross, who many like to consider the King of Bonds, lost one of his prized titles last week when his PIMCO Total Return Fund was stripped of its status as the world’s largest mutual fund because of lagging performance and a swamp of investor redemptions.

The PIMCO Total Return Fund — somewhat of a benchmark for many bond fund managers — had outflows of $4.4 billion in October, marking the fund’s sixth straight month of investor withdrawals, and lowered its assets to $248 billion, according to Morningstar.

For the year, the PIMCO Total Return Fund has had outflows of about $33.2 billion. The Vanguard Total Stock Market Index now holds the title of world’s largest mutual fund with $251.1 billion.

Fears of rising interest rates once the Federal Reserve scales back its extraordinary stimulus have resulted in continued net cash outflows by investors and led to Gross’s fund being down 1.36 percent for the year — beating the industry benchmark but lagging behind many of the fund’s competitors.

Gundlach doesn’t whine over his stolen wine

By Jennifer Ablan and Matthew Goldstein

Who said bonds are boring? In recent days, Jeffrey Gundlach, the new king of the fixed-income world, has been dominating headlines with his lengthy CNBC interview on everything from counterparty risk to the market’s love affair with Apple stock to talk in the blogosphere about Gundlach’s pricey Santa Monica, Calif. residence being burglarized of more than $10 million in assets.

Against this backdrop, Gundlach’s firm, DoubleLine, hit a huge milestone this week as well, hitting $45 billion in assets under management.

For those who watched Gundlach’s TV interview on Wednesday they would never have guessed that the 52-year-old lost several high-end paintings and a 2010 red Porsche Carrera 4S in the burglary at his home a week earlier. The stolen goods include paintings by such artists as California Impressionist Guy Rose and landscape artist Hanson Duvall Puthuff. Also stolen were five luxury watches, wine and cash.

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