Bill Gross Raises Cash

Bill Gross,"the bond king,"has rebalanced the industry-leading bond fund,the PIMCO Total Return Fund.He raised cash to 7% of the fund in November from -7% in October.Mr.Gross also cut government securities to 51% from 63% in October,which was a five-year high.He sliced mortgage securities from 16% to 12%,the lowest on record.The Total Return Fund is up about 17% year over year,better than 55% of comparable funds.
Mr.Gross feels that the bonds will decline in value when the Federal Reserve,reacting to an improving U.S. economy,raises interest rates in 2010.He is co-CEO and co-Chief Investment Officer at PIMCO,along with Mohamed El-Erian.They have been adding exchange-traded funds to PIMCO's offerings recently.