Gross Reduces U.S. Debt for First Time Since January |

Gross Reduces U.S. Debt for First Time Since January

“Asset values should be negatively affected.”

May 11 (Bloomberg) — Bill Gross, manager of Pacific Investment Management Co.’s $150 billion Total Return Fund, reduced his holdings of U.S. government debt last month for the first time since January.

Pimco’s founder and co-chief investment officer cut government debt as a percentage of assets in the fund to 26 percent in April from 28 percent in March, according to the Newport Beach, California-based company’s Web site. Gross also lowered his holdings of mortgages securities to 64 percent from 66 percent.

Gross’ holdings of government debt in March were the most since April 2007 as he advised investors to favor debt of agencies such as Fannie Mae that have U.S. government guarantees. Gross has advised favoring stable income over speculative growth, saying this year marks a “demarcation” in economic policy under the administration of President Barack Obama.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ak9RTplSegdU&refer=home

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