I guess it is time to revisit PIMCO and Bill Gross and Mohamed El-Erian, since the headlines have started up again. When last we visited the soap opera, I had a simple question: “What’s the most important job of a chief investment officer?”
This time, other questions. Given the thousands of due diligence questionnaires (DDQs) filled out by consultants, institutional investors, and investment advisors about PIMCO, how many of them identified the issues in advance?
Who questioned the firm’s process?
Who saw past the fame of the key people and identified the cultural rifts?
Truly, I’m interested in knowing, because I don’t think there are many DDQs extant among those thousands that give a hint of what was happening at PIMCO.
We see performance and infer process. We recognize accomplishment and grade the “people” questions in that light.
"I’ve never seen Bill and PIMCO scrutinized like this before," Eric Jacobson of Morningstar was quoted as saying in a Reuters story.
The purpose of those DDQs and the whole of due diligence is to get at the issues in advance. A very tough standard. Who met it in this case?