Bill Gross

DEFINITION of 'Bill Gross'

Legendary bond investor who founded Pacific Investment Management Company (PIMCO), the largest bond fund in the world as of 2014. William H. Gross is notably known in the investment world as the king of bonds.

Bill Gross was born in 1943 in Middletown, Ohio. He graduated from Duke University with a degree in psychology after which he joined the military at the age of 24 and was deployed to Vietnam. After his military service, Gross went on to business school at the University of California in Los Angeles.

BREAKING DOWN 'Bill Gross'

In 1971, with only about $12 million of assets, Gross founded PIMCO with friends Jim Muzzy and Bill Podlich. As of the first half of 2014, assets under management by PIMCO had grown to almost $2 trillion, making it the largest active fixed income fund management firm in the world. He credits his mathematical prowess and risk instincts to blackjack. After earning his undergraduate degree, Gross set out to Vegas where he worked at the blackjack tables, counting cards for up to 16 hours a day. From his months of counting cards, he learnt a vital lesson which he applies in his investment decisions: taking too much leverage and having too much debt will bring the house of cards tumbling down. Gross started out with $2,000 in his pockets in Vegas and left with $10,000 after four months.

Bill Gross left PIMCO in September 2014 to manage a smaller fund with Janus Capital Group. Much like popular investment gurus in the financial world who are market movers and shakers, an investment by Bill Gross made public would impact the financial market. On the day his move to Janus was publicly announced, Janus share price climbed 43% representing a historical one-day gain for the company. Also, the fund managed by Gross saw its assets under management climb to almost $80 million at the end of September 2014 from $13 million at the end of August 2014.

From learning about risk at the gambling tables to creating spectacular returns from his fixed income investments, Bill Gross is also a successful stamp collector. There is a William H. Gross Stamp Gallery at the Smithsonian National Postal Museum. In 2005, he formed a complete collection of 19th century United States postage stamps. In 2013, he auctioned off a collection of British stamps from which he collected proceeds of about $9 million.

All of Gross’s $9 million dollar auction proceeds went to Doctors Without Borders. Proceeds collected from his Finnish and Scandinavian stamps went to Columbia University. In addition to his philanthropic offerings, he has also donated millions of dollars to Duke University, University of California, Cedars-Sinai, and Mercy Ships.

As of 2014, he is one of the top self-made billionaires and powerful people in the United States according to Forbes.

Bill Gross has three kids and is married to Sue Gross.

 

RELATED TERMS
  1. PIMCO (Pacific Investment Management ...

    PIMCO is a global investment management firm that specializes ...
  2. Gross Income

    1. An individual's total personal income, before accounting for ...
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  4. Gross Exposure

    The absolute level of a fund's investments.
  5. Gross Earnings

    1. For individuals, the total income earned in a year, as calculated ...
  6. Gross Profit Margin

    A financial metric used to assess a firm's financial health by ...
Related Articles
  1. Investing News

    Where Does Bill Gross Keep His Money?

    Discover how Bill Gross, one of the world's most successful and eccentric billionaires, invests his money and why he plans to give it all away.
  2. Entrepreneurship

    The Greatest Investors: William H. Gross

    Bill Gross Born: 1944 in Middletown, Ohio. Affiliations: Pacific Mutual Life Insurance Company, Pacific Investment Management Company (PIMCO), Janus Capital Group. Most Famous For: Considered ...
  3. Mutual Funds & ETFs

    Grading Bill Gross at Janus

    Learn about how Bill Gross, once the head of the largest mutual fund in the market, has had poor investment results at his new fund.
  4. Active Trading

    William H. Gross

    Bill Gross is the world's leading bond fund manager. As the founder and managing director of the PIMCO family of bond funds, he and his team of bond professionals have more than $600 billion ...
  5. Bonds & Fixed Income

    PIMCO - How It Has Fared Since Its Gross Departure

    Learn about how PIMCO has seen massive outflows of investor capital since Bill Gross left the firm. Read about the recent performance of its bond funds.
  6. Investing News

    Bill Gross: It's a Xanax Existence for the 99%

    Read about the investment letter from famed bond king Bill Gross for 2016. See how he says the 99% are living a Xanax existence while the 1% prosper.
  7. Investing News

    Mohamed El-Erian Vs. Bill Gross: The Two Bond Kings (C, JNS)

    Discover how Bill Gross and Mohamed El-Erian, two investors who preach eliminating emotion from investing decisions, let emotion and hubris end an era at PIMCO.
  8. Investing Basics

    Thank You, Pimco: BlackRock Drops Bond-Fund Fees

    Blackrock has lowered its fees to snag money leaving Pimco's bond funds. But by how much and who's following suit? Read on.
  9. Taxes

    What is Gross Income?

    Gross income is an individual’s total income before taxes and other adjustments are considered.
  10. Financial Advisors

    One Year After: PIMCO Total Return Fund (PTTRX)

    A look at the PIMCO Total Return fund almost a year after Bill Gross' departure.
RELATED FAQS
  1. What are the differences between gross profit and gross margin?

    Learn how gross profit and gross margin are calculated and how each is used in fundamental analysis. Generally, these numbers ... Read Answer >>
  2. What is the difference between gross margin and gross profit?

    Understand the difference in definitions between gross margin and gross profit, and learn what each represents as a metric ... Read Answer >>
  3. Does gross profit include tax?

    Find out what gross profits are, how they are calculated, how they are interpreted by investors and whether taxes are taken ... Read Answer >>
  4. What are the differences between gross profit and net income?

    Find out how companies determine gross profits and net income, and how these figures provide quick snapshots of their financial ... Read Answer >>
  5. What is the difference between AGI (adjusted gross income) and gross income?

    Find out the differences between your annual gross income and your adjusted gross income, or AGI, both of which are calculated ... Read Answer >>
  6. Are gross sales and taxable gross sales the same thing?

    Learn the difference between gross sales and taxable gross sales and how these terms relate to the profit and tax liability ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center