Co-Founder
Pimco
THE NUMBERS: Nearly 50-year career, three-time Morningstar Bond Manager of the Year, Bond Manager of the Decade. Inducted into the Fixed Income Analysts Society’s Hall of Fame. Famously avoided 2008 financial crisis with his bond fund returning 4.8%, while his benchmark dropped 4.2%, and S&P 500 Index dropped 38%.
BIG BREAK: After a car accident while at Duke University, spent months in a hospital where he read Edward O. Thorp’s “Beat the Dealer.” Pair became friends, with Gross telling Thorp: “I tell him all the time that he’s responsible for my career.” Says arrived at Pimco at the right time—30-year bond bull market that began in early 1980s.
KEY METRIC: His total return fund generated a 7.8% annualized return during the 27 years he managed it.
GAMESTONKS: It’s not just Redditors cashing in on meme stocks. Gross said he made a cool $10 million shorting videogames retailer GameStop during the company’s wild market ride earlier this year. “The volatility is super high and that promotes an ability to make some money,” he told the financial press.
PHILANTHROPY: Managing investments at William, Jeff and Jennifer Gross Family Foundation, where he’s aiming for 5% annual return so as to donate about $20 million annually. Donations have included Doctors Without Borders, CHOC Children’s Small Baby Unit, Laguna Food Pantry and Orange County Teachers of the Year awards. Gave $1.5 million to charities and organizations providing relief from the effects of the coronavirus on Southern California communities.
IN HIS WORDS: In commentary published by the Business Journal in May, said: “As for my own philanthropy, I have endeavored to put my money where my mouth is, giving more toward direct action. Yes, there are a few medical buildings with my name plastered on them, and the Smithsonian’s William H. Gross Stamp Gallery in Washington, which is more guilty pleasure than indulgence for which I apologize to no one and which allows the public to view some of my collection. But the bulk of my giving has gone toward organizations that provide healthcare, humanitarian relief, education, and community support. In other words, groups that have a ground game and provide direct assistance to urgent causes.”
• NET WORTH: $2.3 billion
• LAST YEAR: $1.65 billion
• AGE: 77
• RESIDENCE: Laguna Beach
• SOURCE OF WEALTH: bond investing
