Bill Gross of Newport Beach bond fund manager Pacific Investment Management Co. plans to invest in mortgages as hedge funds and other investors look to unload the debt.
Gross, chief investment officer of Pimco, said he’s taking advantage of slumping prices for “high quality” assets as investors sell off bonds tied to mortgages, according to a Bloomberg report.
There’s value in “assets that are regurgitated into the market place at prices that are more attractive than we have seen in decades,” Gross said via video from Pimco’s Newport Beach headquarters to reporters at the Allianz Global Investors annual press conference in London on Friday.
Pimco is part of Germany’s Allianz SE.
Gross’s $120 billion Total Return Fund, the largest bond fund, earned 10.7% in the past year, outperforming 94% of its peers, according to data compiled by Bloomberg.
The fund had 46% of its assets in mortgage bonds and 19% in investment- grade corporate debt as of January, according to Pimco.
