Playing for Keeps with $45 Billion

In the early 1970’s, when Lhe focus for traders was on stocks, William H. Gross, whose qualifications included a master’s degree in finance and success at the Las Vegas blackjack tables, fely the lure. But in a bear market, the only job he could land was clipping bond coupons for the Pacific Mutual Life Insurance Company in Los Angeles.

Undeterred, he plotted his move into equities from the dusty vault. Along the way, a funny thing happened. He got interested in bonds. “Lucky me,” he said. “Little did I know where the opportunity was.” When bonds began a long-term rally in 1981, Mr. Gross was along for the ride.