The Purge

A large left coast money manger - oh for Pete's sake PIMCO ! - purged its media friendly Co-Head today. The purge was similar to the exit of Hippy Fed watcher, Paul McCauley several years ago. Both brilliant men in my opinion but both failed in the returns category. Not everyone is cut out for the execution end of the business. I get the sense that large positions of color coded Eurodollars hastened both men's trip to the yacht club. Paul was running a T-Bill like Fund loaded with them before the Libor seizure and El-Erian had more than a few B's under his control too.

As long time readers know, I've had my bell rung several times back there myself, so no shame in my opinion. The truth is all the greats have had a fair share of luck, and strips of Eurodollars can leave a mark when trends change. I wish Mr. El-Erian all the best, he was always super nice to me when we spoke. From all of us in the "Back months", we'll be here if you decide to come back. My advice? Fire up the Carver and never look back.

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