From Zero Hedge:

Many have been wondering why Bill Gross, with his atavistic aversion to holding U.S. paper, has not yet branched out into precious metals which are the natural hedge to surging rates (not to mention sovereign default).

Probably the primary reason for this is that the firm's flagship credit funds do not have the mandate, nor permission, to invest in such asset classes. As such, the firm's $200-plus billion TRF flagship fund, at least, is limited to fixed income securities.

However, the same limitation does not apply to the firm's other funds, especially the recently launched $1.2 billion equity fund, the Pimco EqS Pathfinder. The fund was launched in 2009 under the stewardship of Anne Gudefin and Charles Lahr, who jointly ran the $16 billion Mutual Global Discover mutual fund. So in an interview recently granted to Fortune by Gudefin, we were not very surprised to hear her response on what her largest investment position is in...

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