LGT and Bill Gross: Princely Bank Versus Bond King
«Surprising perspectives», «connections» and «valuable background information» are what LGT promises to offer to its clients and other interested parties. Recently, the princely bank published an incisive discussion featuring Pimco founder Bill Gross.
Despite any public misconceptions, Bill Gross is far from a failure. In 1971, he founded the asset management firm Pimco and steadily transformed it into the world’s leading fixed-income specialist. In respected American financial media such as Business Insider and Bloomberg, his opinions continue to be featured frequently. Forbes currently estimates his personal fortune at $1.71 billion.
At its peak in 2013, the assets under management of Pimco’s renowned Total Return Fund had reached an impressive $300 billion.
Shortly thereafter, a dramatic conflict ensued between Gross and CEO Mohammed El-Erian. Both men eventually left the company, and Gross was later awarded $81 million in damages.
Surprisingly Unceremonious
An undeniably fascinating figure, Bill Gross is the subject of guest author Wendy Cooper’s contribution in LGT Private Banking’s «Insights» series. The publication pledges its readers surprising perspectives, connections, and valuable background information.
According to a LinkedIn post by LGT (see above), the tone of the piece is notably direct: it criticizes Gross for his «hubris» and points to a «downfall» in which his «eccentric personality» may have played a role. During his post-Pimco tenure at Janus Henderson, it is noted that «he over-speculated on interest-rate bets and government bonds, accruing significant losses.»
A Matter of Chance?
Gross’s overall entrepreneurial achievements are also subject to debate. Some critics argue that his legendary success at Pimco was largely a matter of timing, as his career perfectly coincided with a period of historically unprecedented interest rate cuts. Yet, amid the criticism, a few words of praise still emerge: recent studies have confirmed that the Pimco Fund delivered significant alphas.
There is a certain irony in the fact that an entrepreneurial tribute to the man once hailed by «Forbes» over two decades ago as the «Bond King» appears in a glossy publication from the princely LGT – an institution where old-world aristocracy and modern financial power intersect.
