Pimco to enter hedge fund market
US- Fixed income investment manager Pimco has announced as part of its expansion outside the US market that it is entering the hedge fund market with the launch of a fixed income fund for US and foreign investors.
In an interview with the Financial Times, Jim Muzzy, co-founder of Pimco and now its managing director, denied that the group was entering the market too late. “We’re taking advantage of what we’re doing now, and adding leverage,” he said.
Pimco has been expanding outside the US ever since the German insurer Allianz paid £3.3bn for a 70% share two years ago. Allianz has switched some of Dresdner’s fixed income business to Pimco and it will be able to provide the fund with some of its assets. Bill Gross, another Pimco co-founder and its present CIO, is likely to oversee the project.
Muzzy says Pimco has been running a hedge fund for a client over the last three years and he is confident the group has sufficient risk analysis tools to market it worldwide.
In addition, Pimco will unveil plans later this month to expand its Asian operations by appointing investment managers in Singapore and Tokyo, both solely sales and marketing offices to date.