Fund manager William H. Gross is leaving Pacific Investment Management for Janus Capital.
Gross founded Pacific Investment Management, or Pimco, in 1971; and helped build it into one of the largest money managers in the world. But GuruFocus reports recent months have seen the fund shed nearly $70 billion in assets.
And news of Gross’ departure — in a quiet press release on Friday — comes after a Wall Street Journal report earlier this week, that the SEC is investigating Pimco for possible fund mismanagement. (video via Bloomberg)
“They’ve been looking at pricing issues at Pimco — specifically this one Exchange Trade Fund. The issues they looked at are why it’s done so well; if there are pricing issues involved or not.”
Still, Pimco’s straits aren’t exactly dire — the company oversees nearly $2 trillion in assets, after all. So Gross’ move surprised industry watchers, who characterized joining his former rival as a shock to Wall Street and the bond industry.
MarketWatch writes: “One regulatory probe does hardly a horrible year make when you run a world-beating operation the scope and size of Pimco and have a decades-long, wildly successful trading record, but it seems a theme is developing.”
According to CNBC, sources said Gross had trouble getting along with other members of the firm.
"Those sources citing the reason for his firing being because of what was cited as increasingly erratic behavior on his part.”
But, it appears, not so erratic that he can’t get another job. Gross will head up the Global Unconstrained Bond fund at Janus, where he will take the reins October 6. (Video via Money)
