Gross vs. Gundlach YTD Similar Results BUT Gross Gets More “PR Love” reporting: Bond King’s Trade Pays Off

The bond king might be making a comeback.

After suffering one of his worst performances ever in 2011, over the past three months, Bill Gross, manager of Pacific Investment Management Co.’s Total Return Fund, rode an aggressive bet on mortgage bonds to beat most of the fund’s rivals and the index against which bond-fund managers measure themselves.

Mr. Gross’s fund, the world’s biggest bond fund with $252 billion in assets, recorded a 2.88% return in the three months through March. The performance beat the benchmark Barclays Capital Aggregate Bond Index by 2.58 percentage points, ranking in the top 11% of all bond mutual funds for the quarter, according to investment-research firm Morningstar Inc.

“It is a quarter beyond expectations,” said Mr. Gross, Pimco founder and co-chief investment officer. “If we could do it for three more quarters, I would jump up and down in ecstasy.”

Let’s compare PIMCO Total Return Instl (PTTRX) vs. their other main competitor DoubleLine Total Return Bond I (DBLTX) on year to date.

As we can see BOTH Bill Gross and Jeffrey Gundlach beat their benchmark index and it seems both had very similar returns.

So why is it Gross gets all the PR?

In 2011 Gundlach had a great year but his performance was overshadowed by the dismal results from Pimco.

This will be a great battle to follow because both managers are the best in the business.

Now whoever delivers the goods to their investors will win the game.