Question on Pimco fund composition as listed on M* report
I'm looking at a Morningstar report on the composition breakdown of the Pimco Unconstrained Bond fund. It's listed as the following:
Cash: Long-114%, Short-32%, Net 81%
Bonds: Long-88%, Short-71%, Net 16%
In an abridged version of this report, only the net figures were reported, and so the client asked why the heck the fund was 81% in cash, and I couldn't answer him. That came as a shock to me as well. The long/short breakdown shows it's not quite that simple, but I'm still confused as to what going long/short in cash means. Can anyone shed any light?
I kinda suspect that short cash means you're borrowing money (leverage), but going long in cash over 100%? Dunno.
One add'l question while I'm typing away -- many bond funds seem to have this negative cash balance which again means they're going out on leverage. Should I be worried about that -- should I interpret this as an indication the fund is fairly risky -- or is that a pretty standard maneuver for a bond fund?