Managing a bond fund that has nearly a billion dollars of your own money, and getting a negative return doesn't inspire much confidence and Soros, evidently, sees the disease as spreading into the Capital Group. And when interest rates go up, as they will soon, guess what happens to bond valuations? Ouch.
It bears watching what Soros does with his money, especially when he makes a big move. I imagine that he gets good insider info from the Obama admin, so maybe this is an indicator of an upcoming interest rate rise.
I wonder where Soros is putting that half billion? What might he be up to?
How many basis points do you see rates increasing from this point by the end of 2016?
Don’t worry, Bill’s hedged.
People were warned a year ago to get out of bond funds, interest rates were going up - what took everyone so long.
Gross wasn’t exactly on top of his game the last few years at Pimco either. Maybe he has just plain lost it.