Janus Capital Shares Tumble After Soros Said To Pull $500 Million From Gross' Fund

Janus Capital shares have tumbled back from earlier gains after WSJ reports that a firm run by George Soros has pulled a $500M investment with Bill Gross. The represents the unwind of a $500 million investment Soros made in Gross almost exactly one year ago.

 

 

As The Wall Street Journal reports,

George Soros’s firm has pulled its roughly $500 million investment with  Bill Gross, less than a year after the billionaire investor gave the former bond king his stamp of approval, according to a person familiar with the matter and industry data.

 

The move is a blow to Mr. Gross, who has struggled with poor performance and outflows at his Janus Global Unconstrained Bond fund since he left Pacific Investment Management Co. last year. The money invested by Soros Fund Management was held in a separate, institutional account that followed a similar strategy as Mr. Gross’s mutual fund.

 

Industry data provider eVestment LLC, which tracks institutional accounts at fund firms, confirmed that $490 million wasn’t reported by Janus in separate accounts managed by the firm between the second and third quarter. The trade publication Pension & Investments earlier reported on the $490 million outflow, but P&I didn’t identify the party that made the withdrawal.

There are no details as yet on reasons, but one might suspect performance is among them...

 

And an artist's impression of the new "Market-adjusted" Janus Tombstone...

Never has the term 'Tombstone' been so prophetic.