The myth of the great investor
Known as the "king of bonds," William Gross has been referred to as the "world's leading bond fund manager" and one of the "greatest investors," by such publications as Investopedia. Born in Ohio in 1944, his resume includes such accolades as being the first portfolio manager inducted into the Fixed-Income Analyst Society Inc. Hall of Fame and serving as both the managing director and chief investment officer of Pacific Investment Management Company (PIMCO), the world's largest fixed-income management firm.
However, in a recent "Investment Outlook" commentary posted on his company's blog, Gross looked back on his tenure in the world of finance, and despite recognition from his peers, he wondered if he could prosper in a new era of finance and whether he was indeed a great investor or simply a product of his time.
"All of us, even the old guys like Buffett, Soros, Fuss, yeah – me too, have cut our teeth during perhaps a most advantageous period of time, the most attractive epoch, that an investor could experience…" he wrote. "Perhaps, however, it was the epoch that made the man as opposed to the man that made the epoch."
But despite his reflection, the PIMCO head did admit that he has been successful in some areas of the market. Namely, he lauded his skills as a measured risk taker. Gross says that he was "decently good" at interest rate calls and "a risk taker at the margin."
Investors who wish to follow in the footsteps of Gross may benefit from properly managing their risk through the help of asset protection and risk management tools that can help them analyze market investments and create adaptive exit strategies.
At SmartStops, our portfolio protection service is powered by an advanced analytic engine designed to help investors of all levels better manage risk. The key is to make timely and informed decisions when risk levels are on the rise and take action to protect profits, limit losses and improve returns. To learn more about our Risk Alerts and Portfolio Protection Service or sign up for a free trial click here.