A top firm CEO having a tough time.
Regulators are investigating whether PIMCO artificially boosted its $3.6 billion returns.
The Wall Street Journal reports that the latest blow comes from the Securities and Exchange Commission.
The newspaper reported Wednesday that the regulator is investigating whether bond giant PIMCO, which Gross runs, artificially boostedthe returns of its $3.6 billion Pimco Total Return Fund.
Investigators are examining whether the fund bought investments at discounted prices but relied on higher valuations when calculating the value of its holdings shortly later. (Pimco says it’s cooperating and that it believes its pricing procedures are 'entirely appropriate.')
One regulatory probe does hardly a horrible year makes when you run a world-beating operation the scope and size of Pimco and have a decades-long, wildly successful trading record, but it seems a theme is developing. The Financial Times makes the point twice in one paragraph, calling Gross 'a man on the back foot' who is in the midst of 'a bad run.'
For a rundown of the slings and arrows faced by Gross in recent months please hit the link below: