Hedge-fund manager Ethan Schwartz has joined Pacific Investment Management Co. as the troubled bond-fund giant seeks to diversify into other asset classes.
Schwartz joined the California firm in New York as a money manager, focused on distressed credit. He formerly covered that area as a senior analyst at Contrarian Capital Management, where the former journalist helped manage about $2.7 billion.
“PIMCO has strong capabilities in distressed debt and opportunistic credit investing,” Schwartz’s new boss, PIMCO corporate distressed chief Sai Devabhaktuni, said. “Ethan’s hiring is another example of the firm’s continued focus on further enhancing our investment platform outside of traditional markets.”
It also comes at a time of turmoil at PIMCO, which manages nearly $2 trillion. The firm’s management underwent a major shakeup in January when co-chief investment officer Mohamed El-Erian—widely seen as the successor to firm founder Bill Gross—unexpectedly resigned amidst reports of disagreements with Gross. In addition, PIMCO’s flagship fund, run by Gross, has suffered a string of outflows.