While Pimco tries to smooth out the turmoil that erupted in January when CEO Mohamed El-Erian announced his resignation, reportedly due to conflict with firm co-founder Bill Gross, the controversy apparently continues.
There are still concerns about Gross, who has been criticized for his hard-charging style, knowledgeable sources tell The Wall Street Journal
Some senior Pimco executives were upset about remarks from Gross to the media that were critical of El-Erian. And they warned him to refrain from such comments in the future, the sources say.
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That rebuke led Gross to threaten resignation, something he has done numerous times since El-Erian left the firm in March, the note.
Meanwhile, Pimco's flagship fund, Total Return, which is run by Gross, continues to lose investors. The fund has suffered a net outflow for 14 straight months, totaling $64 billion. That has pushed the fund's assets down to a still formidable $225 billion.
Gross has questioned the work of Pimco officials on the business side.
To be sure, not everyone is down on Gross and the Total Return fund. Morningstar gives its top gold rating to the fund.
"Pimco Total Return remains a compelling choice," Morningstar analyst Eric Jacobson writes on his firm's web site, though he acknowledges "there have been challenges."
And while Total Return's performance has lagged its peers over the last year, "the fund's longer record remains among the category's best," Jacobson notes.
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