'Bond King' Bill Gross says he's dumping 80% of his regional bank holdings after making 'mucho bucks' in just three months

• PIMCO co-founder Bill Gross said he's selling 80% of regional bank holdings after making "mucho bucks."
• The so-called "Bond King" snapped up shares in PacWest and Western Alliance just three months ago.

"Bond King" Bill Gross made "mucho bucks" on his regional bank holdings – and now he wants out.

The PIMCO co-founder only just snapped up battered Western Alliance and PacWest shares three months ago, when a banking turmoil broke out following the collapse of Silicon Valley Bank.

The shares have bounced back from lows hit earlier this year. PacWest's stock has rallied almost 300% from a May 8 bottom, while Western Alliance has surged 357% since May 4.

"Regional bank call has made mucho bucks. Time for me to cut back 80% of holdings," Gross said in a Wednesday tweet.

US regional bank stocks have been trading at a steep discount since a confidence crisis spread across the banking sector in March, with investors worrying that more smaller lenders could be hit by the kind of problems faced that brought down SVB.

Gross previously said regional bank stocks offered "an enticing long-term investment" and even shared his desire to start his own bank one day – fueling his investment in smaller lenders back in April.

His fresh sale comes just days after PacWest agreed to merge with Banc of California in an all-stock deal to create a new bank.

The agreement will see the new bank hold $36 billion in combined assets, Banc of California and PacWest announced Tuesday. It will have over 70 branches in California and will be spearheaded by Jared Wolff, the current CEO of the Banc of California.

Gross is among a pool of investors who saw last quarter's banking turmoil as a buying opportunity, including Greenlight Capital founder David Einhorn and "Big Short" legend Michael Burry.