Another prominent investor increased his bond holdings recently.
Bill Gross, manager of PIMCO’s Total Return Fund, the world’s biggest bond fund, bought mortgage-backed securities and U.S. Treasuries and reduced the fund’s cash holdings in February, according to PIMCO’s (Pacific Investment Management Co.) Web site.
Despite his recent comments indicating a tepid view of the bond market, Gross increased holdings of mortgage-backed securities to 33 percent of the fund’s $72 billion, from 26 percent. He boosted Treasury holdings to 20 percent from 13 percent, while trimming cash holdings to 28 percent from 33 percent.