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

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


“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?