(Bloomberg) -- Pimco's biggest mutual fund trailed a majority of peers for the second straight year after missing a rally in longer-term bonds and betting incorrectly that inflation would rise.

The $162.8 billion Pimco Total Return Fund, managed by Chief Investment Officers Scott Mather, Mark Kiesel, and Mihir Worah after the surprise departure of Bill Gross on Sept. 26, returned 4.7% in 2014, trailing 53% of comparable funds, according to data compiled by Bloomberg. In 2013, it lost 1.9%, lagging behind 65% of peers.

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