Bill Gross, Bond Fund Manager and the co-chief investment officer for Pacific Investment Management Co. in Newport Beach has again sold his mortgage-backed bonds thereby reducing his stake in them to the lowest in nearly five years. Approximately $30 billion of mortgage bonds have been sold by Gross from his Total Return Fund. Its $185 billion which is under management makes it the largest fund of its kind as on Sept. 30.

Fannie Mae, Freddie Mac and Ginnie Mae buyers of Government backed home loan, had issued these investments as mortgage-backed debt. On Sept. 30, Total Returns mortgage related holdings dropped to 22% as compared to the 38% drop that was reported on Aug. 31. The percentage of the fund that was invested in mortgage bonds has risen from 50% to 86% from July to February.

Gross has stated in a recent report from Pimco that though the investments were made to fetch strong returns, their prices might lower down as the Federal Reserve’s mortgage purchasing program would end by next spring. Bloomberg reported on Monday that Pimco might offer its clients these stock investing services. Gross had been focusing on bonds since the last 40 years. This might prove to be a change for him.

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