Pimco Hires Ex-Moore Capital Manager Fahmi for Fixed Income

Aug 18, 2014 4:49 pm ET

(Updates with Total Return Fund in seventh paragraph.)

Aug. 18 (Bloomberg) -- Pacific Investment Management Co., the firm that oversees $1.97 trillion including the world’s biggest bond fund, hired Mohsen Fahmi from Moore Capital Management LLC to focus on global fixed-income assets.

Fahmi, who was a senior portfolio manager at Moore and previously its chief operating officer, will be a managing director and generalist portfolio manager at Newport Beach, California-based Pimco, according to a statement today. He’ll start Sept. 2 and report to Mihir Worah, the deputy chief investment officer.

“The breadth of his experience and his passion for investing will serve our clients well,” Worah said of Fahmi in the statement.

Pimco has been adding money managers after the abrupt resignation of co-chief investment officer Mohamed El-Erian this year sparked the biggest management overhaul in the firm’s history. Co-founder Bill Gross, who became sole chief investment officer after El-Erian’s departure, appointed six investment deputies in January and has rehired some of his trusted managers back to Pimco, including Paul McCulley in the newly created role of chief economist and Sudi Mariappa as a generalist fund manager.

Pimco is broadening its offerings and expanding non- traditional bond funds as clients pull money from traditional strategies and seek ways to protect themselves from rising interest rates. Gross, who has struggled with redemptions at his Total Return Bond Fund, has reiterated that Pimco is committed to shifting from a U.S.-oriented bond firm to a diversified asset manager.

New Hires

The firm this month hired Ethan Schwartz as a money manager focusing on distressed credit and in June hired Geraldine Sundstrom, formerly of Brevan Howard Capital Management LP, in its multi-asset group. In May, Pimco hired Rick Chan and Jason Goldberg as portfolio managers in its derivatives unit, and the firm in March hired Harley Bassman, a former Credit Suisse Group AG managing director who calls himself “The Convexity Maven,” as an executive vice president focused on volatility trading.

Gross’s $223 billion Pimco Total Return Fund suffered its 15th straight month of net investor withdrawals in July, with clients pulling $830 million, according to estimates by Morningstar Inc. That was the smallest month of withdrawals for the world’s largest bond mutual fund since redemptions began in May 2013. The fund has advanced 4.3 percent this year, lagging behind 54 percent of similarly managed funds, according to data compiled by Bloomberg.

Fahmi, who spent 11 years at Moore in London and New York, previously worked at investment banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. He’s a graduate of Ain Shams University in Cairo, Ohio State University and Stanford University’s Graduate School of Business.