Bill Gross, manager of the world's largest bond fund, apologized to his investors late Friday for his poor performance, saying "I'm just having a bad year." In a Special Edition letter posted on PIMCO's website, Gross, who runs the $242 billion PIMCO Total Return portfolio, wrote that he underestimated the contagion effect from the Europe debt crisis and the U.S. debt ceiling debacle, accodgint to CNBC
"As Europe's crisis and the U.S. debt ceiling debacle turned developed economies towards a potential recession, the Total Return Fund had too little risk off and too much risk on," said Gross, who also shares the title of co-chief investment officer at Pacific Investment Management Co. with Mohamed El-Erian.
Gross, known as the "bond king", came under heavy criticism earlier this year when he bet heavily against U.S. Treasuries which have turned out to be one of the biggest outperformers of 2011.
His fund's poor performance led Gross to simply call his open letter to investors, "Mea Culpa."
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