Pimco, the world’s largest bond fund manager, is about to launch a new stock fund: Pimco Global Opportunities Fund.
The fund also can invest in bank loans, government bonds, junk bonds and distressed securities, according to a regulatory filing obtained by Bloomberg.
Pimco’s new fund will hold securities and financial instruments from at least three countries, one of which may be the United States.
It can invest in stocks of companies of all different sizes.
The fund’s managers will use a bottom-up style of investing, meaning they will start by looking at individual companies rather than industries.
As of Sept. 30, more than 90 percent of Pimco’s $940 billion in assets was allocated to bonds.
The Pimco Total Return Fund recently became the world’s largest mutual fund, with $200 billion in fixed income assets.
“Pimco is a bond shop, but I think they have a view that bonds will underperform stocks on a pretty regular basis in the future,” A. Michael Lipper, head of Lipper Advisory Services, told Bloomberg. “Now they are hedging.”
But Bill Gross, who runs the Total Return Fund, certainly isn’t bullish on stocks in the short term.
He recently wrote on Pimco’s Web site, “Rage, rage, against this conclusion if you wish, but the six-month rally in risk assets — while still continuously supported by Fed and Treasury policymakers — is likely at its pinnacle. Out, out, brief candle.”
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