Bill Gross Continues His Fixed Income Closed-End Fund Buying Spree

Last week, Bill Gross purchased muni bond closed-end funds. This week, he continued the buying spree, and bought more muni funds, but also diversified by buying high yield, corporate and floating rate bond funds. There was heavy buying on Monday and Tuesday, but I did not yet see any SEC filings for Wednesday, so this round of purchases may be completed.

The total buys since December 8 total over $18.5 million. Mr. Gross is a billionaire, but much of his net worth is likely tied up in company stock and other illiquid assets, so an $18 million purchase using liquid discretionary funds seems significant.

Since the original purchases last week, some of the muni bond closed-end funds have appreciated about 4%. Just today, the NMUNP index (Nuveen Municipal Closed-End Fund Exchange Traded Index) was up 2.87%. It has recovered part of its losses, but is still down about 10% from the highs in September.

Many muni bond closed-end funds yield around 7% on a tax exempt basis, which is equivalent to over 10% for those in the top income tax bracket.

Here is a table showing the reported Bill Gross purchases since November 8:

Trade Date Shares   Price $ Invested    
12/08/2010 12,096 PMX 9.75 $117,936.00 Muni  
  9,900 PCQ 11.65 $115,335.00 Muni  
  19,056 PCK 8.2741 $157,671.25 Muni  
12/09/2010 36,225 PCQ 11.5997 $420,199.13 Muni  
  50,000 PCK 8.2465 $412,325.00 Muni  
  23,333 PMF 12.048 $281,115.98 Muni  
  42,864 PZC 8.65 $370,773.60 Muni  
  88,156 PMX 9.8493 $868,274.89 Muni  
12/10/2010 19,168 PCQ 11.5743 $221,856.18 Muni  
  48,816 PCK 8.1387 $397,298.78 Muni  
  32,002 PMF 12.0397 $385,294.48 Muni  
  19,400 PZC 8.5211 $165,309.34 Muni  
  50,000 PMX 9.7494 $487,470.00 Muni  
12/13/2010 50,000 PCQ 11.5886 $579,430.00 Muni  
  14,439 PMF 11.95 $172,546.05 Muni  
  6,632 PZC 8.47 $56,173.04 Muni  
  14,500 PCK 8.0723 $117,048.35 Muni  
  23,503 PMX 9.47 $222,573.41 Muni  
  149,000 PHK 12.1342 $1,807,995.80 HiYld  
  114,465 PFL 10.8627 $1,243,398.96 Floaters  
  128,033 PFN 9.3686 $1,199,489.96 Divers  
  161,068 PCN 14.5761 $2,347,743.27 Corp  
  142,615 PTY 15.8023 $2,253,645.01 Corp  
  100,000 PTY 15.7 $1,570,000.00 Corp (Spouse)
12/14/2010 16,237 PTY 15.8714 $257,703.92 Corp  
  50,000 PHK 12.0903 $604,515.00 HiYld  
  50,000 PFN 9.6383 $481,915.00 Divers  
  50,000 PFL 11.0896 $554,480.00 Floaters  
  46,701 PCN 14.6249 $682,997.45 Corp  
Totals 1,568,209     $18,552,514.87    

 

Full Disclosure: No position in above funds.

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2 responses to “Bill Gross Continues His Fixed Income Closed-End Fund Buying Spree

  1. Thanks for posting this.
    P.S.He’s not buying PML because I own it.

  2. He knows that there will be a Federal bailout of the states.

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