Bill Gross rides derivatives around Fed policy

<i>Breakfast with Benjamin:</i> The Bond King levers up. Plus: There is nothing smooth about the Fed's next move, the first nail in hedge funds' coffin and more.
SEP 17, 2014
  • Bill Gross adopts a derivatives strategy to navigate Fed policy. The Bond King's new normal boils down to levering up the Pimco Total Return Fund. Still trailing 57% of his peers year-to-date
  • The Fed's tightening cycle looks to be a bumpy ride for investors. We are so deep into uncharted waters with the Fed lugging around its $4.4 trillion accidental bond portfolio that it is hard to imagine any economist really knows what will come next. There is no clean exit
  • Justifying Calpers' decision to exit hedge funds based on poor performance and high fees might be closing the book too early on hedge funds. Analysts and commentators seem to miss the point that these hedging strategies are lagging during one of history's more resilient equity market runs. Timing is everything
  • How the Calpers' move out of hedge funds could ripple across the asset management industry. The reaction to the reaction. Looking behind the curtain of those high-fee products
  • Just in time for what some are calling the start of the end of hedge funds, another regulator has given the private investment partnerships the green light to advertise. Better late than never. CFTC follows the SEC's lead

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