The $117 billion Pimco Income Fund has started to trail its very top-performing peers.
Only two managers of large U.S. bond funds have managed to record a gain this year.
Of the 198 bond funds with more than $1 billion, only these two managed to record a gain this year.
At significantly higher costs, active management still offers scant benefit for beleaguered investors.
Pimco's co-founder complains that these funds have started hugging the indexes.
The worst Treasury market rout in decades has pushed policy sensitive two-year yields to around 4.3%.
Fed Chair Jerome Powell can't afford to keep raising rates the way his predecessor Paul Volcker did in the 1980s, Gross said.
“It looks like interest rates will have to rise a lot,” the billionaire investor said.
Investors are also driving up expectations for how high the central bank might push policy rates early in 2023.
U.S. Treasury yields jumped after another hotter-than-expected inflation report.
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