Once the world’s largest bond fund, Pimco’s Total Return fund has seen brighter skies again as it more than doubled its bet on long-term Treasurys just as long-end yields fell, according to Bloomberg.
Along with increasing its Treasury holdings, the fund also slashed its position on Treasury Inflation Protected Securities – or TIPS – by 30%, as well as cutting down its credit default swaps in Brazil, China, Mexico, Italy, and Russia.
The fund, currently managed by Scott Mather, Mark Kiesel and Mihir Worah, runs $110 billion in assets – half of what it had when Bill Gross, Pimco’s former CIO, used to run it. It is currently up 1.2%, outperforming 67% of its peers.
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