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mahatmakanejeeves

(56,904 posts)
Fri Sep 26, 2014, 04:26 PM Sep 2014

'Bond King' Bill Gross Leaves Pimco, Joins Janus

Source: ABC News

NEW YORK — Sep 26, 2014, 4:21 PM ET

By STEVE ROTHWELL and BERNARD CONDON AP Business Writers

The biggest star in the bond market shocked the financial world Friday by leaving the huge money management firm he has led for four decades and joining a much smaller rival.

Bill Gross, who co-founded the investment giant Pimco in 1971 and runs its $222 billion Total Return Fund, said he would join Janus Capital Group. The prospect that investors would follow the guru-like fund manager and pull their money out of Pimco sent the stocks of several rival investment companies soaring.

Janus soared 43 percent. Allianz, the German company that owns Pimco, dropped 6 percent.

"Many people invested in Pimco's Total Return know Bill Gross, and they want his expertise," said Todd Rosenbluth, director of fund research at S&P Capital IQ. "Money will leave Pimco. It's just a question of how much."



Read more: http://abcnews.go.com/Business/wireStory/bill-gross-join-janus-capital-25775621



Bill Gross is well known for his stamp collection. The stamp gallery at the Postal Museum in DC is named after him. He traded a block of four Inverted Jennies to get the last US stamp he did not have.

William H. Gross Stamp Gallery

USPS Unveils Inverted Jenny Stamp
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'Bond King' Bill Gross Leaves Pimco, Joins Janus (Original Post) mahatmakanejeeves Sep 2014 OP
This is huge! ballyhoo Sep 2014 #1
Do we know why El Baradei left Pimco? elleng Sep 2014 #2
I need some background/info on why this is important? packman Sep 2014 #3
Bond Titan’s Job Switch Sets Off Scuffle to Cash In mahatmakanejeeves Oct 2014 #4
 

packman

(16,296 posts)
3. I need some background/info on why this is important?
Sat Sep 27, 2014, 10:07 AM
Sep 2014

To me, and others, it ranks as a big SO WHAT until someone educates me on the going ons of financial gods because it is why out of my sphere of here-and-now.

mahatmakanejeeves

(56,904 posts)
4. Bond Titan’s Job Switch Sets Off Scuffle to Cash In
Sat Oct 4, 2014, 04:04 PM
Oct 2014
Bond Titan’s Job Switch Sets Off Scuffle to Cash In

Markets
With Bill Gross Gone From Pimco, Rival Firms Angle for Clients

By Gregory Zuckerman and Kirsten Grind
Oct. 3, 2014 7:41 p.m. ET

The global battle to reshape the $38 trillion bond market began before sunrise on Friday, Sept. 26, when an announcement blinked onto computer screens in the Newport Beach, Calif., offices of Pacific Investment Management Co.
....

The battle has echoes beyond Wall Street. About 14 cents of every dollar invested in taxable bonds is in Pimco funds, according to fund-research firm Morningstar Inc. And 28,000 401(k) plans have $88 billion invested in the Total Return fund, according to BrightScope, a La Jolla, Calif.-based firm that analyzes retirement plans. Wal-Mart Stores Inc. and Oracle Corp. are among the businesses whose retirement plans have the largest investments, according to the most recent data, BrightScope said.

Mr. Gross and his new firm will be formidable competitors. After Warren Buffett, Mr. Gross may be the world’s most recognized investor and could attract many Pimco clients.
....

Mr. Gross, who made more than $200 million a year at Pimco, organized his deal with Janus so quickly that he hadn’t negotiated salary when he came on board, said one person familiar with the matter. At Janus, he will be paid equal to a portfolio manager, a fraction of what he made at Pimco, this person said. While the pay range of fixed-income portfolio managers is wide, the high end is far less than Mr. Gross made previously, according to people involved in the industry.
....

—Dan Fitzpatrick, Gillian Tan, Ulrike Dauer and Michael Wursthorn contributed to this article.

Write to Gregory Zuckerman at gregory.zuckerman@wsj.com and Kirsten Grind at kirsten.grind@wsj.com

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