(NEW YORK) -- Record amounts of cash followed “Bond King” Bill Gross out the door.
Investors pulled $23.5 billion from Pimco’s flagship, Total Return bond fund, after he abruptly left the company last month. The fund lost more than 10 percent of its assets after Gross departed for rival Janus Capital. The fund also lost money before Gross quit.
Pimco has been trying to calm investors. “[T]he fund is well positioned to meet potential redemptions. Short-term cash management is an area of expertise and strength at PIMCO,” the company said in a statement.
Some of the money that flowed out of Pimco went to rivals Vanguard, Janus and DoubleLine funds.
The big movements are example of the hazards of hiring and keeping star fund managers who have a big following.
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