OKE - Bond king Bill Gross will sell most of his regional bank holdings

2023-07-26 15:44:59 ET

Billionaire investor Bill Gross said Wednesday he will cut back most of his regional bank stock holdings some three months after buying them in the wake of March's banking turmoil.

Taking to Twitter, the bond king, as he is known, said the regional bank investments "has made mucho bucks" and its "time for me to cut back 80% of holdings."

His remarks come one day after troubled lender PacWest ( NASDAQ: PACW ) agreed to be sold to Banc of California in an all-stock deal, fueling a strong rally among regional bank stocks in Wednesday trading.

Some of his other regional bank picks from April include Western Alliance Bancorporation ( NYSE: WAL ), Synovus Financial ( NYSE: SNV ) and SPDR S&P Regional Banking ETF ( NYSEARCA: KRE ), all of which jumped in Wednesday's session.

Gross, ex-chief investment officer of Pacific Investment Management Co., also noted in the tweet that he favors Magellan Midstream Partners ( NYSE: MMP ), citing its "7% arb discount" to Oneok ( OKE ), which in May agreed to acquire Magellan for ~$19B in cash and stock.

More on regional banks:

• JPMorgan Chase said to buy $1.8B of mortgages in PACW-BANC deal
• PacWest And Banc Of California Tie The Knot: And The Winner Is
• Commerce Bancshares: Not Bad, But Not Great Either

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