The credit crunch has been cruel to some fund managers, notably Bill Miller of Legg Mason, who kept on buying as financial stocks kept on tanking. On the other hand, Bill Gross of on-fire Pimco, went long on Freddie and Fannie bonds, switching out of Treasuries and corporates. With the bailout by Uncle Sam, these bonds got a huge bump, which made Gross's big bet a winner. He's up $1.7 billion in his Pimco Total Return fund, reports the Financial Times. Gross was an early proponent of some sort of government action. He put his fund's money where his mouth was. His reputation is burnished. This is yet another in a string of savvy moves, which has boosted his fund 9.2 percent in the 12 months prior to Aug. 1.

For more:
- here's the FT article

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