The departure of legendary “bond king” Bill Gross from Pimco last month was a shock to Wall Street and was followed by $23 billion outflows from Pimco and a 30% rise in the stock of Janus Capital, Gross’ new place of employment. However, there wasn’t the kind of influx into Janus that was expected, as some believed Gross loyalists were fleeing Pimco for Janus Capital, which saw only $300 million more fixed income assets, compared to $1 billion for Blackstone, as reported by theStreet.com.
Although Blackstone and Pimco are much bigger than Janus, analysts were surprised that Bill Gross coming on board didn’t have a bigger impact. A Sterne Agee analyst commented, “The impact on the fixed income franchise from Bill Gross appear limited.” In addition, Janus’ expensive new hires, which include bond superstar gross, will cut into numbers. In addition, since Gross is 70, he is likely to retire before he can show the kind of decades of strong performance as demonstrated by his time at Pimco.