The LA Times is reporting the “SEC is investigating Pimco’s star fund manager, Bill Gross“. Their lead,
A federal investigation of Pacific Investment Management Co. is the latest crack in the armor of the $2-trillion fund giant, where a trustee recently questioned the $200-million salary, “bullying” behavior and “mediocre” recent performance of co-founder Bill Gross. Word of the investigation follows a series of setbacks for Pimco, including the abrupt departure of Gross’ heir apparent, Mohamed El-Erian, reports of clashes between the two, and an outflow of more than $65 billion in funds from Gross’ signature Total Return Fund as disappointed investors cashed out.
Pimco is headquartered in Newport Beach (pictured).