PIMCO co-founder Bill Gross has raised the stake of Treasury holdings in his bond fund, The Wall Street Journal reports. The $243 billion Total Return Fund had 5% of Treasurys in May 2011 as compared to 4% in April 2011.
Gross boosted the non-U.S. developed market holdings in the fund to 10% from 6% in May. The manager also reduced his position in mortgages in May to 21% from 24%, adds Reuters. The fund held a negative 9% short position in the category liquid rates, which includes U.S. dollar-denominated interest-rate swaps, swaptions, options and other derivatives.
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