PIMCO versus Loomis Sayles on Ireland

Bond giants Loomis Sayles has been contrarily bullish on Ireland recently, announcing in October that they had been buying bonds there, when yields were around 6.5%.

They reiterated their confidence in Ireland in November, saying, "Two years from now, you will look back on this as one of the brightest things you did," Fuss told Reuters about purchasing Irish bonds. "If you have a short-term horizon, this is not for you." The yield rose to about 8.5% then. It has since almost hit 9%.

Since then, bond king PIMCO's Mohamed El-Erian decides to stoke the flames, insisting, "What you advise your sister in Ireland now is that you’d say take your money out of an Irish bank and put it in another bank headquartered elsewhere,” El-Erian said. “That’s what happened in Argentina and in emerging economies. People worry about their savings.’"

Pretty spooky coming from the guys with the biggest mutual fund. Yet, in the short term, comparing PIMCO's flagship fund with Loomis Sayles's flagship fund, PTTDX has lost 0.78% in a month compared to 0% for LSBRX, gained 1.27% to LSBRX's 4.31% gain over 3 months, gained 9.23% to LSBRX's 14.9% in a year.