Pacific Investment Management Co. is becoming less dependent on Bill Gross, preparing for an eventual future without the world’s best-known bond investor and adding pressure on its rising stars to live up to his legacy.
Bill Gross ’s Pimco Total Return Fund , the world’s largest mutual fund, was the second-biggest decliner among the largest U.S. bond managers in the past month as clients pulled money for the first time in two years amid a selloff in Treasuries.
Wally Weitz, the mutual-fund manager who beat 90 percent of rivals in the past five years by buying stocks he deemed cheap, says bargains are so scarce these days that he’s letting his cash holdings swell.
The work that earned Eugene Fama the Nobel Prize in economics provided the intellectual foundation for index-tracking funds, which have upended stock picking as investors abandon active money managers.
Kenneth Heebner ranked as America’s No. 1 stock picker before losing his touch and most of his main fund’s assets. The 71-year-old manager, at the bottom of his peer group for the fourth year in five, hasn’t lost his swagger.
T. Rowe Price Group Inc. has posted a profit every quarter since going public in 1986, in part because the firm sat out the dot-com boom in the 1990s and scaled back mortgage holdings before the housing collapse.