After leaving Pimco, Bill Gross starts new gig at Janus Capital Group with one trader

BOSTON | NEW YORK: Bond star Bill Gross so far has requested only one trader for his new gig at Janus Capital Group, according to a report from mutual fund research firm Morningstar Inc.

Gross last week rattled global bond markets with his surprise departure from Pacific Investment Management Co (Pimco), where he ran the massive $222-billion Pimco Total Return Fund, to join Janus to run a new unconstrained bond fund with about $13 million in assets.

“To support Gross’ end of the business, Janus will need to have the infrastructure in place to manage a sudden influx of cash,” Morningstar analyst Sumit Desai said in a research report. “So far, Gross has requested just one trader to assist him in the Newport Beach, California office that Janus will set up for him, as well as potentially one client-facing person,” the report said. Janus was not available for comment.

EL-ERIAN SURPRISED

Mohamed El-Erian, who quit Pimco in January amid reports of clashes with Gross, said he was surprised by the events surrounding the departure of the star bond manager last week. “His departure — the fact that it happened and how it happened — was a surprise,” El-Erian, 56, said in an interview with Betty Liu on Bloomberg Television. “What was not a surprise was the bench and a strong team led by Dan Ivascyn. They are superb,” said the former chief executive officer and co-chief investment officer of Newport Beach, California-based Pimco.

Pimco last week named 45-year-old Ivascyn, a top-ranked money manager, as CIO as it seeks to revive performance and restore calm at a firm that has been rattled by management disputes.

El-Erian on Sept 27 praised Ivascyn as a “brilliant investor” and an “inspiring leader.” Ivascyn’s Pimco Income Fund has beaten 99% of competitors over the past three and five years.

El-Erian, chief economic adviser at Pimco parent Allianz SE, said he was “happy” with his current role in response to whether he would return to Pimco as CEO. “I have this portfolio of activity and I get to spend a lot more time with my daughter,” said El-Erian.