Voice of Experience: Sabrina Callin, Managing Director, PIMCO

By Pamela Weinsaft (New York City)

“I think I ordered my first application to Harvard and Stanford’s Business Schools when I was roughly 10 years old,” said Sabrina Callin, a PIMCO managing director based in the firm’s Newport Beach headquarters. “My parents were both educators, and instilled a strong work ethic and belief in me that I could do anything I wanted to do. As a result, I was motivated from a young age by the ability to have an influence and make things happen.”

During her undergrad years at Texas Christian University—a school founded by her father’s ancestors back in the 1800s—Callin decided to pursue a career in finance, graduating with degrees in accounting, finance and economics. A focus on finance, she felt, would provide her with the opportunity to be in a “very dynamic and intrinsically interesting profession,” and could provide an opportunity gain unique insight and expertise that “is very broadly relevant, and well beyond the day-to-day workings of a given job.” In the period between her undergraduate and graduate programs, rather than heading to Wall Street as she’d originally planned, she earned her CPA. “I believed experience as a practicing CPA would provide me with an important knowledge base that would be beneficial for my longer-term career path.”

She spent the first four years of her career at KPMG Peat Marwick, part of it at the firm’s office in Sydney, Australia. She enjoyed the work, and not just because of the plum overseas assignment. “I found being a CPA for a Big Six—at least at the time—accounting firm interesting because I got to work with a number of great people at client companies and learned an incredible amount about the intricacies of financial reporting and public offerings.” But, she always knew that accounting wasn’t her passion. “I had always wanted to go to business school to get into high finance. Accounting was an educational stepping stone, but it was not the path I wanted to stay with for the long term.”

In keeping with her childhood dreams, she went to Stanford Graduate School of Business to get her MBA. “I went to business school thinking about investment banking,” says Callin. “However, when I actually started talking to alumni and considering the reality of the job together with my own interests, it made me question that career path.”

During her time at Stanford, Callin soul-searched and thought about what she would enjoy and be good at. “At the time, there was a tremendous amount of interest on the part of business school students in the high-potential upside of Silicon Valley with the explosion of technology and dot-com type companies. But for me it was about a lot more than money. I was aware that this was a decision that would affect the rest of my life and I wanted to pursue something I was truly passionate about and where I believed I could add significant value. I also wanted to make sure that I would have the opportunity to work with great people that I truly liked, trusted and respected, because I knew I’d be spending more waking hours with my colleagues than with anyone else in my life.”

Callin originally planned to stay in the Bay Area long term—her husband is from the area. However, when she heard about PIMCO, she became, in her words, “a bit obsessed” with the firm. “The founders and investment professionals, the highly ethical and collegial culture, the long-term macro-oriented, disciplined approach to investing—I realized quickly that it was an organization that I really wanted to be a part of.”

During her internship at PIMCO working with institutional clients, Callin found the environment both intense and exciting. “The people are smart and intensely driven, but also very team oriented. People at PIMCO are also academically inclined by nature and love teaching.” In addition Callin was pleased that, even as a new employee, the corporation’s “very flat organizational structure” gave her “opportunities to learn from everyone, including the company’s founders.”

At the end of her internship, PIMCO offered Callin a position with the firm’s Account Management group, starting immediately after graduation. Once at PIMCO, she split her time between working with institutional clients and working on the firm’s innovative “portable alpha” investment products. She quickly became an authority on the topic, eventually rising to head product management for PIMCO’s equity portable alpha products, and leading an effort with colleagues in writing Portable Alpha Theory and Practice: What Investors Really Need to Know, the definitive book on the subject which was published in 2008. Callin was promoted to PIMCO Managing Director in 2009, and is currently involved in PIMCO’s Advisory services business, focusing on portfolio risk assessment and management, valuation, analytics and liquidations for public and private institutions.

“Writing the book was a little more painful than I thought it would be, in terms of the time, energy and effort involved,” said Callin. “Nonetheless it still was something that, in retrospect, really needed to be done. I just wish we had done it earlier.” Callin spearheaded the project because she felt there was a lot of propaganda and misinformation in the market place. “A lot of what was being called portable alpha involved leverage and risk exposure that did not receive very much, if any, focus in presentations that were prevalent at the time. The result was that investors were selecting such strategies for the high potential returns without a decent understanding of the underlying risks. Since PIMCO was one of the original innovators of the concept, I felt we had an obligation to help people better understand the risks, in addition to the potential benefits.”

Women on the Buy-Side and Work-Life Balance

The investment management industry is “very dynamic, constantly changing, and one where ethics are of supreme importance” says Callin. “It is also a male-dominated industry to a significant degree because of a number of factors, both historic and current. As a result, there are going to be cultural differences and standards that make the environment somewhat more conducive or comfortable for men on average. Fundamentally, that presents certain challenges.”

Callin adds, “Generally the key, from my perspective, is that people should seek to give and do their best no matter what. Don’t look for excuses.” She acknowledges that it can be challenging in terms of work-life balance. “Our clients come first and the hours are long; it is the opposite of a 9-to-5 job. It is difficult to predict and plan for work obligations, which can certainly take time away from personal interests and commitments.”

When not working for PIMCO, Callin spends her time off with her family. “I outsource a lot so that when I’m not working I’m focused on spending quality time with my kids and my husband [instead of household chores and errands]. I don’t think anyone—male or female—can do it all. You have to decide what is most important. I guess I’ve always been focused on that. At the end of the day, in addition to the health and happiness of my family, for me adding significant value at work—for PIMCO’s clients—really matters.”