Oct. 1 (Bloomberg) — Mark Moehlman didn't waste time before pulling his clients' money out of Pacific Investment Management Co. after Bill Gross shocked investors with news of his departure.
"We sold out of our positions within the first couple of hours," said Moehlman, managing director at Newport Beach, California-based Beacon Pointe Wealth Advisors. "Then we fielded calls all afternoon and the evening and through the weekend."
The money, tens of millions of dollars, ended up in funds managed by TCW Group Inc. and Loomis Sayles & Co. Both firms have competing products that are beating the $222 billion Pimco Total Return Fund this year.
Gross's departure is opening the door for smaller competitors to break Pimco's dominance after the world's biggest bond firm quintupled assets to $2 trillion over the past decade. TCW, Legg Mason Inc. and DoubleLine Capital LP all offer funds that are appealing alternatives to Pimco's Total Return Fund, which has stumbled amid Gross's bets and lagged rivals for three of the past four years.
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