Capitalist and fund manager Bill Gross has been getting lots of criticism lately from his colleagues on the Street stating his returns of late have been sub-par, which is odd considering he manages conservative bond funds and not high flying stock portfolios. CNBC even went as far as to push rumor mongering type of stories suggesting the guy is a jerk...frankly most of the money management types on Wall Street dont exactly strike me as super nice characters and quite a few can probably be characterized as jerks... Bill Gross net worth is $2.2 billion and he manages several billions in bond portfolios....last year he made $200 million, and yet Forbes describes him as underpaid for someone of his stature. Well, he runs bond funds which charge a fairly low management fee though his bond funds are expensive compared to say, Vanguard Funds, so his funds have an internal management fee of 0.85% (charge to high of an internal management fee and you wipe out the returns. A hedge fund typically has a 2% internal management fee plus they take an additional 10% of any additional profit....so the comparison doesnt make sense. He and his wife, actress Jennifer Aniston, last year bought a $37 million mansion in Beverly Hills California and they own two other mansions.... Perhaps the odd look from his colleagues is due to the fact that Bill Gross is actually concerned about economic inequality and believes it threatens the capitalism. He simply feels industries should pay people higher wages...not very radical, but I guess thats enough for Wall Street to look down on one of its own. finance.yahoo/blogs/daily-ticker/pimco-s-gross--income-inequality-a-risk-to-capitalism-as-we-know-it-161436850.html
Posted on: Thu, 19 Jun 2014 03:58:29 +0000
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