Bill Gross Quits PIMCO, Which He Co-Founded, Joining Janus

Tyler Durden's picture

After co-founding PIMCO in 1971, Bill Gross has called it quits...

  • *WILLIAM H. GROSS JOINS JANUS CAPITAL
  • *JANUS:GROSS TO START MANAGING FUND,RELATED STRATEGIES OCT.6,'14

“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” said Mr. Gross.

 

Janus stock is +20% on the news. 40% now!)

 

and PIMCO's parent Allianz is tumbling (dragging the DAX red)

 

and has crashed DAX

 

*  *  *

Gross co-founded PIMCO in 1971...

 

*  *  *

Full Statement:

William H. Gross Joins Janus Capital

Janus Capital Group Inc. (NYSE: JNS) today announced that William H. Gross, world-renowned fixed income investor, will be joining Janus Capital Group. He will manage a recently launched Janus Global Unconstrained Bond Fund and related strategies, and will join Myron Scholes, Ph.D., and other members of the Janus team focused on global asset allocation. Mr. Gross’ employment will be effective September 29, 2014 and he will begin managing the Janus Global Unconstrained Bond Fund and related strategies effective October 6, 2014.

Mr. Gross will be based in a new Janus office to be established in Newport Beach, California and will be responsible for building-out the firm’s efforts in global macro fixed income strategies. His concentration on such strategies will be separate and complementary to Janus’ existing and highly successful credit-based fixed income platform, built under the leadership of Janus’ Fixed Income Chief Investment Officer, Gibson Smith.

“Bill Gross has an exemplary track record with decades of success and he will offer an exceptional approach to navigating today’s increasingly risky markets with a focus on macro, unconstrained strategies. His involvement provides Janus a unique opportunity to offer strategies and products that are highly complementary to those already managed by our credit-based fixed income team,” said Richard M. Weil, Chief Executive Officer of Janus Capital Group. “With Bill leading our global macro efforts and Gibson our credit-based fixed income team, I am confident Janus will be able to meet the needs of virtually any client.”

“I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization,” said Mr. Gross. “I chose Janus as my next home because of my long standing relationship with and respect for CEO Dick Weil and my desire to get back to spending the bulk of my day managing client assets. I look forward to a mutually supportive partnership with Fixed Income CIO Gibson Smith and his team; they have delivered excellent results across their strategies, which deserve more attention.”

*  *  *

Attributable to Dick Weil, Janus Chief Executive Officer

We are extremely proud to welcome Bill Gross, an investment industry icon, to Janus. His  arrival at Janus will provide the firm with a very unique opportunity to offer global macro fixed income strategies and products that are highly complementary to the very successful credit-driven fixed income franchise that we have built out over the last decade under the leadership of Gibson Smith. In fact, we are pleased that investors will have immediate access to Bill’s expertise as he takes the reigns of the recently launched Janus Global Unconstrained Bond Fund. Additionally, as we continue to address the needs of our clients, Bill will join Nobel Laureate Myron Scholes, Ph.D., Ashwin Alankar, Ph.D., and other members of the Janus team focused on the expansion of our global asset allocation business.  Today’s announcement is another major step forward in our efforts to attract the most sophisticated and proven talent in order to meet the real and evolving needs of our clients.

*  *  *

Bill Gross Statement:

"For most of my career, I have been privileged to be associated with one of the most successful investment management firms ever -- Pacific Investment Management Company (PIMCO). Today, with a mixture of excitement and sadness, I am announcing that I have decided to join Janus Capital Group and end my association with PIMCO. It was not without great thought and deliberation over quite some time that I decided to begin this next chapter. During my time at PIMCO we accomplished a great deal, managing now over 2 trillion dollars of global assets with a track record of very significant value added that has generated tens of billions of dollars to individual, corporate, and sovereign client portfolios. But now, after having spent considerable time serving in senior management, it is a time for me to reduce executive and people management responsibilities at a larger firm and focus on the pure aspects of portfolio management at a smaller one. Janus is the right fit at the right time in my career - and my life.

 

I am honored to be welcomed by Janus Capital Group, which is headed by former PIMCO managing director/COO Dick Weil. At Janus, in a new Newport Beach office, a simpler yet still intense career lies ahead of me to be able to assist individuals and other investors in their needs for above market returns in an increasingly risky market environment. In particular, I greatly respect the fixed income investment philosophy of Janus, which is consistent with my belief: value added consistent with the protection of principal.

 

I have been fortunate to have had a great run at PIMCO, and I am looking forward to be able to continue this run with Janus.

 

I sincerely wish all of my friends and associates at PIMCO much future success. It has been an honor to have worked at PIMCO these many years."

*  *  *

Let's hope Gross' timing is not this bad...

 

*  *  *

How long before El-Erian is back as CEO?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
SloMoe's picture

Pimco? Rats? Ship?

Silky Johnson's picture

Well that was quick, I guess it goes to show who was really running that fucking ship.

Divided States of America's picture

Another liquidation event today in the markets (bonds, this time)???

Cant wait for the headline "Larry Muthafuckin Fink 'quits' Blackrock"

wallstreetaposteriori's picture

El-erian is totally going back to PIMCO in a few months.....  This plan was launched a long time ago with Allianz when they had their spat.

He_Who Carried The Sun's picture

Away with that clueless looooooooooooooser Gross.

hedgeless_horseman's picture

 

 

Too bad Gross couldn't execute a fantastic big-money, no-lose, free-look-back exit strategy like Bailey received for Janus from KSU. 

Still NMFP Tom?

americhinaman's picture

anyone have any info on how much "keyman" liquidation risk PIMCO is facing, and which funds that's in?  that in addition to the regular redemption requests... could really move various bond markets.

Yes We Can. But Lets Not.'s picture

Seems odd. It is as if New York Yankee Derek Jeter announced that rather than retire he'll be joining the Minnesota Twins AA club, the New Britain Rock Cats. 

Why not retire?

rccalhoun's picture

he didn't inside trade his own resignation????????????????????

Mountainview's picture

Gross looks tiered...isn't this a sort of final golden handshake in a semi-retirement? Why this half step?

tongue.stan's picture

He should just go back to his real roots, counting cards in vegas.

You're never too old for blow and hookers, I hear.

The Big Ching-aso's picture

I think Larry Summers would be perfect for the job. Fat opportunities like this to refloat a sinking ship come around only once in a blue moon.

ParkAveFlasher's picture

I'm more concerned with where Gross' hair is going.  (Sold my Pimpco stuff a long time ago).

aVileRat's picture

I suspect not monitoring his M2M's that would have perma-broke the Pimco brand in the eyes of the pensioners who need that income was the final straw.

Enjoy the resurrection story-arc Bill. In the end, you were right on the front-end trade; only about 7 months too soon.

 

Bangin7GramRocks's picture

Not him! I saw a story that said that while he was working long hours impoverishing the world and stealing from the United States government, he missed many milestones with his daughter. He felt so badly that he waited until Pimpco was ready die and then retired to spend more time with his daughter; his 5 jets, 3 yachts, 6 houses and 100 underpaid staff. Good on him!

ajax's picture

 

 

"He (Gross) will manage a recently launched Janus Global Unconstrained Bond Fund and related strategies, and will join Myron Scholes, Ph.D., and other members of the Janus team focused on global asset allocation."

Sure why not?? More of Sweden's Nobel Ironists - only not Peace but Economics.

Who can forget Myron Scholes and Robert Merton's spectacularly successful Long Term Capital Mgnt.??

http://www.capital-flow-analysis.com/investment-essays/nobel_gods3.html

 

 

GetZeeGold's picture

 

 

In other news....Eric Holder is out of PIMCO.

eclectic syncretist's picture

Sonofabitch!!  Must be time to re-evaluate bonds.  This gross mf is now Just Another Needle-dicked Usurous Shithead.  Here is some footage of him from a few years back right after the 2008 crash.

https://www.youtube.com/watch?v=wftuosM4KIk

Stoploss's picture

Don't you know the beginning of the death of the FED when you see it?

Somebody else quit first...

Aknownymouse's picture

So is PIMCO going to liquidate?

Stoploss's picture

That would require liquidity in the market, which does not exist, so, no.

zjxn06's picture

Not good when the captain jumps.

junction's picture

Time for Obummer to announce a new ISIS threat.  He hates it when someone steals the limelight from him, as Gross has just done.

Gen.Ackbar's picture

You know its not great timing to jump ship when "SEC Probe intensifies at PIMCO" is still a major headline

Dr. Engali's picture

Quits....Lol..... that's what they call it these days. Back in the day it used to be called forced out.

DavidC's picture

Have we just seen the top?

DavidC

Seasmoke's picture

Are we all kidding ourselves ???? This cat would never leave Pimcio if this whole thing isnt fucked up !!!

TabakLover's picture

As is usually the way with self-percieved demi-gods.

lordbyroniv's picture

BOOOOOOOOOOOOM GOES THE DYNAMITE !

Bahamas's picture

Going from Pimp.Co right in the J.anus

sbenard's picture

Wow! His name was synonymous with PIMCO!

GetZeeGold's picture

 

 

Yeah.....was.....whatever.

LawsofPhysics's picture

The Fed must be appyling some pressure.   Bye bye PIMPco....

Dr. Engali's picture

Pimco needed to do this in order to save themselves. Will it work? Who knows. In the end we're all fucked anyway.

LawsofPhysics's picture

I think your bond story is appropriate here.  Sell PIMPco, come back later, should they survive.

Dr. Engali's picture

I find it interesting that Janus is up and Allianz is down. Everybody I know has been pulling money out of Pimco because they think Gross has lost his mind.

LawsofPhysics's picture

I'd be lying if I didn't say pimpco had been similar to CAT for me.  Up and down, generating profits, for me anyway.  Not so much for those pension funds...

fucking sad what "investing" has become.

cart00ner's picture

Global asset allocation sounds like The transfer of money from poor people in rich countries to rich people in poor countries to me!

ajax's picture

 

 

"Global asset allocation sounds like The transfer of money from poor people in rich countries to rich people in poor countries to me!"

Spot on cartOOner only you forgot to mention the magic ingredient: LEVERAGE

 

Pee Wee's picture

It's all just kittens and kandy, right Bill?

ajax's picture

 

 

People seem to think Gross has lost his mind because he mourned his calico cat 'Bob' in public.

I salute you Bill!

janus's picture

yup...much respect for Mr. Gross.  my primary concern is whether or not we'll still be privy to the monthly letter to investors.  Gross is not only a peerless money manager, he's possessed of an agile and nuanced mind, and he's quite the adept writer.

i didn't know what to make of mohammed's departure back in march and i don't know what to make of this, but i do know that janus (capital) has made a superlative acquisition. 

cheers, Bill.

PS cat people are superior to dog people...it's just a fact.

(the) janus

dirtyfiles's picture

Eric Holder yesterday and now this...yea definitely this ship is sinking

yogibear's picture

Jump out before it breaks in 2 and sinks.

orangegeek's picture

If Gross quit or was fired, why is he working for someone else?

 

Most "normal billionaires" would start up their own gig, right?

 

 

 

 

Max Cynical's picture

Agree...

He's 70 years old. A multi-billionaire.

How much is enough?

Frank N. Beans's picture

just 5 years to go and he still wants to work?