Gain. Bill gross, the bond king, the man who could move markets and often compared to peter lynch is leaving the firm he founded more than 40 years ago. He is heading to janis Capital Group where he will manage a new bond firm. This sparked a knee jerk sell off. The total return etf fell slightly and morning star placed all funds under review. But at janis, it stock forward 30 . The Parent Company was down 6 in germany. For many, these are a mainstay. Who is bill gross . Why is he so important and how did he get to the point of leaving the firm he founded . Jane wells has more. Washington package. Bill gross has been king of the world, making investors oodles of money. Starting the Largest Bond Fund in the planet, averaging nearly 8 annual returns since inception. Hes a true giant in the industry. A true legend. A familiar face to nbr viewers is stepping down as ceo and cochief investment officer. In january, grosss heir apparent abruptly left. We got along real well. Investors didnt like it and began pulling out money. Personnel changes including rehiring former portfolio manager. And the company continued to standby their man. Is bill gross past his sell by date . Bill is working hard on the recovery. But we hind the scenes there was talk of a brewing revote. And this week the launch of an sec investigation. Regulators are reportedly investigating whether bond giant pimco. The man who once turned 200 into 10 grand decided to fold them at the company he built. I was surely shocked when i heard that as soon as i got in the office. Bill gross said is time for him to focus on the pure aspects of Portfolio Management at a smaller firm. He has chosen denver based janis where the king hopes to regain his crown. Joining us now to talk about what this departure means and for investors wondering what to do with their money and director of manager research. He is partner and personal wealth advisor. Welcome to both of you. Michael, nice to see you again. How crippling is this to pimco or is it at all . Gross has obviously had a huge impact and imprint on the Investment Strategy across all funds but this is far from a one man show. What he has at his disposal is virtually unparalleled in the bond industry. I know you were getting a lot of calls from clients today asking what should doi with my funds. First they have to do due diligence. It is very likely or possible that this could occur. You know, michael, they have got Great Research capabilities but you all at morning star put not just total return on watch, you put all the funds that you rate on watch. Why did you do it . That reflects the imprint we expect further news later today on his successor but there is also going to be some unofficial or less formal repercussions, too. How the investment process might get adjusted. Bond investors are a very conservative bunch of people. Arent you better off moving your money . Pimco has returned 10 compared to the benchmark of around 1. 5. They understand the duration. There is a whole process. Michael, i heard you on your morning star broadcast that a level of chaos ensues when Something Like this happens at a company like pimco. They have today lost its voice, the face of the company and it has lost its leader. There are plenty of people who have supported bill gross over the years what we are trying to do is assess what the impact on those people will be. Ultimately this is a group of people changes to how that occurs could be a change. We are assessing our views once we have more information and can apply our information to what the new reality will be. Uhhuh. Bill gross has a great track record. You said the same thing. Does it make sense to follow him to the new fund . To janis . Would you recommend that to your clients . Were not recommending any funds. Were in the business of helping our clients. Remember, pimco is among the largest in the world. Janis has not attained that status. But bill gross is the bond king. Michael, final question here one of the leading contenders is ivas ivason. We dont know whether he is going to step in but he very well might. Quickly what do you know about it . Dan has been responsible for heading up the mortgage effort at pimco, which touches most areas of the firm and gets him a great lens into some of the considerations that bill gross is rightfully so well known for. Dan is well regarded by past and current colleagues as well. Should he step into that roll, that brings a level of stability to the funds that would have us urging investors to catch their breath. We will be looking to see how this unfolds in coming weeks. It was a fitting end to the week. The blue chips got a big boost from nike. Helping investor confidence, the Commerce Department report that the economy grew 4. 6 , much stronger than the prior estimate. And the s p up 17 points. Todays rebound was not enough to erase losses. The nasdaq dropped 1. 5 and the s p off more than 1 . Some alarming numbers on the state of the nations public. The pension gap, the difference between what the funds have and what they should have to meet obligations have tripled. Thats more than half of all outstanding state and local bond debt. The plans dont have enough money to pay current and future reti retiree. The u. S. Military and advocates of bitcoin. We will explain after this. Secret tapes are usually straight out of hollywood. Today wall street has its own version. Hay ledgedly show what many fed critics have been concerned about that regular a lators may be too cozy with those they oversee. The tapes were made by a former new York Fed Bank examiner who worked out of goldman sachs. She found cases where he felt pushed back. In one case, it was concluded that goldman did not have the required conflict of interest policy. She felt her opinions were not going over well. The fed category rejects the allegations. She was let go and then sued her former employer. The new york fed commissioned a report to look at its role in the financial crisis. If Biggest Issue was its own culture. This is a story that is likely far from over. Here is another fascinating story. This week in the first meeting of its kind, members of the United States military special Operations Command met with advocates for bit coin. The reason was to learn more about how terror groups are being funded. Aman joins us now from washington. This is a group that is by and large using traditional finance measures like cash in a suitcase. They are concerned about groups like isis laundering proceeds and potentially raising money for terrorist activities. And the big thing the u. S. Military told me is they want to track bit coin over the internet. They want to understand how it works. How many of these socalled crypto currencies work. The whole area of internet finance is something that they do not know well. What a cast of characters. Turning now to wall street. Blackberry posted another loss and it was smaller than expected. Revenue was short of estimates but the ceo says the company will double its Software Revenue next year. After this an investor is taking aim at yahoo . Star board values sent an open letter to marissa outlining ways for the company to unlock shareholder value. One was to combine with aol. Shares rose. That also sent aol higher by more than 3 . Finish line tripped and tumbled. tis appointing results. Higher costs and expenses cut into sales. Hedge fund is in talks with lenders. To help the company avoid bankruptcy. The retailer warned investors earlier this month that it is running out of cash and could have to seek bankruptcy protection, sending shares up a big 19 cents to 99 cents. Our market monitor tonight says investors need to be more selective when choosing stocks in todays market. David, welcome tonightly business report. I understand that your fund you called it the best idea fund and you got a couple of your best of the best to tell us about. Lets start with orly. Why do you like it . We have been shareholders for the last eight years. They have had great same store growth in this country as well as store growth. Today he is trading about 17 times next years cash earnings. We can expect the share price to grow for the next five years. Its quite a space isnt it . Oreilly is unique because it has a dual sensation model. Its allowed it to grow in areas of the country that other firms have not been able to. Big Cell Phone Company . American tower is the large cap name. Its a name we have owned for the last 15 or so years. The business continues to hum on all cylinders. They are benefitting from the 4 g roll outs. Think about brazil, india. Places in south america. Tell us a little bit more about your next pick. About 1. 1 billion market cap. It too has begun to expand oversees. Con from the credit card companies. They buy for pennies on the dollar. They service it in house. They service it both in the u. S. And india. Encore today is trading just nine times next years cash earnings. Broader question about the market. It was a volatile week. Should we make anything of that . I would think over the next six to nine months as there is more talk about the fed raising interest rates. The market is torn between two places if you will. Domestic growth is very good for the market. Coming up, what the chief executives do in their spare time . Going from the board room to the silver screen. On fridays we sometimes like to show you what top Business Executives do on their own time. The ceo of the fortune 500 community. Operations in more than a dozen states and more than 13 billion in annual sales. On nights and weekends he has been pouring his soul and his own cash into this. Field of lost shoes. Its not a documentary. Its not a set piece. Field of lost shoes is an historically accurate major Motion Pictures out this week. They marched 9 miles north over four and a half days through rain to reinforce a fraying confederate line. They ended up here in this field near new market virginia. Here on may 15, 150 years ago, the schoolboys average age 15 fought and ten of them died for the cause. These were not hardened veterans. And he was not a movie producer or a screen writer. Now he is both. My great grandfather, father, uncles were all career army officers. He started toying with making a movie about them roughly ten years ago. You know how to run Nuclear Plants and how to do a lot of stuff. I dont know how but my job is to get the people together who do know how to run a nuclear plant. And make sure theyre doing it right. Thats a producers job. How did you fit this . Thats what nights and weekends are for. You had never writ an screen play before. How was it . It was hard. The mauve vee is about seven boys. But all the rest of the characters, all the adult characters are all real people. John lyles. Like general john c. Brekenridge played by jason isaacs. Despite his grave reservations, he orders the cadets into battle. Thats all he had left. 15yearold boys. They paused here at this fence line. Hardened Pennsylvania Veterans firing at them down here. Mud was so deep that it sucked the shoes off of their feet. They are in hand to hand combat. There was a whole bunch of hundreds of shoes. His troops prevailed. It was a remarkable victory that delayed the ultimate defeat. A day of honor commemorated every may 15th by a new generation of new men and now women. The movie is the realization of a dream. What are you going to do now . Going to go back to my job. We tried to tell the story in a way that we thought the boys would like their story to be told. And the film opens this week in limited release in 20 or so markets. He would be the first to tell you he didnt do it alone. David kennedy was a coscreen writer, another college pal and coinvestors on the project. He said there were very few people who knew what he was doing. Its interesting that every war has these little stories along the way that are big stories and its interesting that he discovered this one. What did you think of the movie . It was very good. My son who was eight absolutely loved it. I thought the performances were very nice. This is the only time where schoolboys were put into battle. Thats it for tonight. Thanks for watching. Have a great weekend. Go see the movie. Have a great weekend, everybody. We will see you back here on monday. Yankee doodle man whether im in a recording studio, on a concert stage, in a crowded nightclub or in the comfort of my own living room, i love a piano. playing arpeggios plays chord its here at the piano that most of americas great songs were composed and written. Im michael feinstein, and over the next few hours,
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