There is a mass exodus, and it isn’t because Passover is around the corner; Bill Gross’ fund at Janus is seeing investors leave in droves.
The Unconstrained Bond Fund, which Bill Gross took control of after leaving the bond fund he founded at Pimco, bled $18.5 million in February. Gross began managing the fund in October after leaving Pimco in September.
Todd Rosenbluth, director of ETF and fund research at S&P Capital IQ Global Markets Intelligence, told Reuters, “The fund has declined in value year-t0-date, which given its short record, is discouraging. We think many investors will wait to see if Gross can establish a stronger longer-term record before considering adding money.”
Gross, who has added $700 million of his own money to the fund, expected a rocky start, given central bank actions in many countries. He said that he and other “old timers” had benefited from “the most attractive epoch an investor could experience, ” and he doesn’t feel that financial environment will be easy to replicate.
Gross eloquently described the era that saw the success of his Total return fund for Pimco grow into the largest bond fund in the world. He said, according to Reuters, “Since the early 1970s when the dollar was released from gold and credit began its incredible, liquefying, total return journey to the present day, an investor that took marginal risk, levered it wisely and conveniently sheltered from periodic bouts of deleveraging or asset withdrawls, could, and in some cases, was rewarded with the crown of greatness.”