After his unexpected departure from Pimco for Janus Capital, “Bond king” Bill Gross made his virgin voyage at Janus’ Unconstrained Bond Fund a bit easier by bringing in $700 million from a single investor. Who was that investor? Bill Gross, as reported by Bloomberg.
The hefty sum came from the same Morgan Stanley brokerage where his how financial adviser works, according to the report, which didn’t mention how much came from Gross himself. However, this isn’t such an unusual move, as Bill Gross did it also at Pimco. The move is similar to an owner or a CEO buying back stock in his own company. The gesture shows confidence and can inspire others to invest. In a sense, it is like putting money where your mouth is.
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“It’s nothing but positive across the board if it’s actually his money, ” said Joshua Emanuel, chief investment officer at Elements Financial Group. “What every investor should want to see from every portfolio manager is the manager putting their own assets into the product.”
Gross managed the world’s largest bond fund, the Pimco Total Return Fund, with $143 billion assets under management. He co-founded Pimco in 1971, and left when it was worth $1.87 trillion. Pimco faced a dismal spring with the highest number of redemptions in its history. Managing a smaller fund at Pimco, Gross has more flexibility, although the Unconstrained bond fund got off to a slow star, losing 1.1% in the last three months, but still performing better than 51% of similar funds.
