Jan. 15 (Bloomberg) — Pacific Investment Management Co.’s Bill Gross, hurt by a wrong-way bet on Brazil last year, said the nation is no longer a preferred emerging market for the world’s largest fixed-income manager.
Gross, speaking at the 2014 ETF Virtual Summit, said the firm still finds Mexican debt attractive. Gross is co-founder and chief investment officer of Newport Beach, Calif.-based PIMCO.
PIMCO’s biggest funds were bullish on Brazil in 2013, a wager that hurt performance. Gross wrote in a Twitter message a year ago that the Brazilian currency, the real, was a better use of cash than high-yield bonds. The real fell 13 percent against the dollar last year, while U.S. high-yield bonds climbed 7.4 percent, based on the Bank of America Merrill Lynch U.S. High- Yield Index.