douglas hodges on the way out.hat it much mulch was time he had to oversee with the farewell the growth after mohamed el-erian departed in 2014. ryan: it kicked off with the an in januaryel-eri of 2014. then you had gross leaving later that year. gross, when he left, he said part of the reason was in fighting. he said his partners were after his bonus. he also said pimco was doing the wrong thing with its strategy and verifying away from bonds and burgers and 82 -- i'm looking at my notes -- something like the varied menu you would get at a cheesecake factory restaurant. far as he was concerned, pimco was making a wrong move in diversifying away from what it was good at and viewed everything as for all investors. this was a difficult time. if you look at the company's assets, they declined by 25% since 2013. they were managing about $2 trillion in 2013. that has declined. they are cutting jobs. what we have seen is they are bringing in new leadership to try to manage this period. guy: let me ask you a question. the

: we have heard a couple months ago that they were considering looking for somebody to replace douglas hodge been a really rough time. you have also heard that maybe hodge is may be facing burnout. it is a really job that he has had to face. he came in after mohamed el-erian abruptly resigned. the reason mohamed el-erian resigned was because of feuding between him and bill gross. hodge inherited a lot of turmoil. and the larger landscape of money managers is changing. pimco is actively managed. their fees are higher than vanguard. you have automation coming in. they are facing a lot of pressure from many factors inside and outside to adapt and figure out a path forward. roman what makes manny the person for this challenging job? john: he is got a really diverse background. right now, the man group, they are the world largest publicly traded hedge fund manager. hedge funds is an area and other alternative assets where pimco might grow. they've also done some acquisitions, which might be a possibility for pimco. or ae he came to man group subsidiary that was bought by them, he worked at goldma

manus: anna: replace douglas many roman will replace douglas hodge.had almost 30 years of experience in the investment industry. he will be based in newport beach, california. manus: luke ellis, if you go to his bio, you can see the backtrack. man group president until today, chief investment officer, head of multi-assets between 2010 and 2013, and he was managing director of financial risk management between 1998 and 2008. anna: just in the last couple days, we've been talking at bloomberg -- our colleagues have been writing about how alley liance sort of pivoting their hiring from the bill gross era. board members site alternative investments. it seems they are overhauling staffing at pimco, something of the theme over the past few days. that's according to a member of the german insurance board. manus: let's get the bloomberg first word news with rosalind chin. donald trump has told supporters he is going all the way after formally securing the republican presidential nomination. the announcement in his home state of new york that pushed him over t

david: you mentioned douglas hodge. in the company's anything about his future plans?ohn g.: they did not specify. to his when i talk management, a couple of months ago they were searching for -- we had heard they were searching for a ceo. they said no, it is a senior -level type management thing, and one of things they made clear was dug is not going anywhere. he did not have plans to go anywhere. i don't know, you know, how this evolved. the actual decision was made by a committee that he is supposed to sit on, and the committee is headed by dan iversen, the chief investment officer. so, time of tell again, what will happen to doug hodge. vonnie: you brought up the idea of passive versus active, and how there is so much pressure because there is so much money going into the vanguard and the vanguard-type passive investments. how will pimco give good return for fees, if you like? john g.: well, i think if you listen to what roman said, you look at the data and you use data to give you stronger returns. a lot of his hedge funds that he has run they are very quiet -- qu

the new ceo of pimco replacing douglas hodge later this year.r leadership of man group and a time of volatility and client withdrawals. that experience may translate well at pimco which has suffered management of people and lost about 25% of its assets since 2013. keene joins us to break it down. the soap opera of personalities at pimco, and the market moves that have made returns very difficult. significant that pimco has turned toward the hedge fund world. you nailed it. the discussion of germany, they want somebody to step in and stabilize profitability, forget about it, none of it matters, stabilize the ship. there, themcos out exit of gross gets press a lots of other active managers figuring out what the new cactuses. the backdrop to this is the market with low rates of return, low yields. starting to make a move. that but noto with with the idea that a hedge fund over traditional long only management because you have one world, absolutely has turned very -- versus one where every institutional consultant is looking at relative returns, pim

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douglas hyde's. high presided over -- hodge presided over a tumult to us time. lost 25%3, pimco has of its asset.bless rate fell to 4.9% in the three months ending in may, the lowest of the third quarter of 2005. the number of people working rose to a record almost 32 million. that is your "bloomberg business flash." guy: interesting that that number is so low, and immigration and unemployment is so big an issue surrounding the brexit debate. theresa may takes that debate to berlin today when she travels to meet angela merkel for the first time since taking office a week ago. said she will not begin with any negotiations until the you has triggered article 50. anna edwards joins us now. these two women, the most powerful people in europe right now, what will they get out of it? or is it a meet and greet? full meete will be a angry when she arrives. -- thereby a joint will be a full meet and greet when she arrives. followed by a joint press conference. details.t expecting remember, no negotiations are set to take place until article 50 is triggered. but they can talk. these two talking might get t