Pimco fund makes $1.7 billion in a day after bailout

The Orange County Register reports:

A huge winner from the Fannie Mae/Freddie Mac federal takeover was Bill Gross’ mortgage-heavy Pimco Total Return Fund, which rose 1.3% in price on Monday. That’s a huge jump for any bond fund, and the Newport Beach money manager believes it was likely a record gain for the mutual fund.

That 1.3% gain, due in large part by anticipating the federal rescue, is not chump change. Assume that Total Return Fund held $129.6 billion — yes, BILLION, the latest figure on its fund fact sheet. So, Monday’s gain equaled a roughly $1.7 billion one-day profit.

Some have argued that Gross has been unfairly talking up his own portfolio while aggressively calling for federal help for the ailing housing market.

Bill Gross sure made out like a bandit at the taxpayers expense.