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Giant Mutual Fund Firm Trying Very Hard To Stop Being A Mutual Fund Firm

Giant Mutual Fund Firm Trying Very Hard To Stop Being A Mutual Fund Firm

Before taking the helm at the 10th-largest mutual fund company in the world almost two years ago, Manny Roman didn’t think much of mutual funds. Luckily for posterity, he even said so on camera at a TED talk, so one can hear his contempt for the industry he is now a leading executive of for free on YouTube for long after he ceases to be so. “It’s a really, really sad story,” he said, speaking about mutual funds generally and not about the recent history of his soon-to-be-employer.

And after 18 months at PIMCO’s helm… yea, Manny Roman still thinks mutual funds are shit and continues to do everything he can to turn PIMCO into a larger, better-weather-enjoying version of his old firm, the Man Group.

Pimco Commercial Real Estate Debt, or PCRED, will invest in both public and private debt—including mortgages, mortgage-backed securities and mezzanine loans—the firm wrote in a public job listing seeking to hire investment staff…. The push into privately held debt, real estate and other so-called alternative investments is a key plank in the strategy led by Emmanuel Roman, the former hedge-fund firm manager tapped as the firm’s chief executive in 2016….

In its bid to beef up its alternatives business, Pimco has sought to take advantage of big banks’ reticence to lend as often as they had before the financial crisis amid a number of new capital requirements.

Alas, he has a very long way to go.

Pimco’s portfolio of alternative funds has grown from $26 billion in assets in late 2016, when Mr. Roman was hired, to some $30 billion today. The firm oversees more than $1.7 trillion in total.

Pimco Pushes Further Into the Lucrative but Risky World of Alternatives [WSJ]

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