Janus Capital Group Inc. (JNS), which last week hired Pacific Investment Management Co.’s Bill Gross to boost assets, may not attract as much as traders and analysts expect, according to a research report by Citigroup Inc.’s William Katz.
“The market has already anticipated $25 billion to $50 billion” in new assets at Janus, Katz wrote today in a report to clients, “setting up for possible disappointment.”
Katz cited an article from research firm Morningstar Inc. yesterday saying that Gross has asked for one trader and one client-support employee to help him.
Gross, 70, on Sept. 26 announced he was joining Janus to manage an unconstrained bond fund. Gross, whose main fund at Pimco had trailed peers since the beginning of 2013, left after his deputies threatened to quit and management debated his ouster, according to people familiar with the matter.
Janus shares soared a record 43 percent on the day Gross announced his decision to join. They’ve since pared those gains, declining 8.7 percent this week to $14.50 at 3:58 p.m. in New York. Katz maintained his “neutral” rating on Janus stock with a target of $14.50 per share.
“To start, Bill has requested a trader and a client-facing professional, but we are in the very early days of these efforts, and we will continue to learn, with Bill, how he might best be served,” Steven Shapiro, a spokesman for Denver-based Janus with Communications Strategy Group, said in an e-mailed statement.
In a report dated Oct. 2, Morningstar analyst Sumit Desai said Gross has long relied on Pimco’s vast resources and that Janus couldn’t match those “anytime soon.”
He said investors should keep that in mind when considering putting money with Janus, and existing clients of should think about Gross’s impact on the company, noting that its fixed-income chief investment officer Gibson Smith runs the unit “quite capably.”
Additional Resources
“I certainly think Janus will give Gross additional resources as his asset base grows,” Morningstar’s Desai said today in an e-mail. “There’s going to be a ramp-up phase here, so there’s no need for investors to rush and invest a lot of money into this fund on Day 1.”
The Pimco Total Return Fund, formerly run by Gross, saw record withdrawals of $23.5 billion in September, the largest of which occurred on the day of Gross’s departure, the Newport Beach, California-based bond manager said.
bloomberg.com
“The market has already anticipated $25 billion to $50 billion” in new assets at Janus, Katz wrote today in a report to clients, “setting up for possible disappointment.”
Katz cited an article from research firm Morningstar Inc. yesterday saying that Gross has asked for one trader and one client-support employee to help him.
Gross, 70, on Sept. 26 announced he was joining Janus to manage an unconstrained bond fund. Gross, whose main fund at Pimco had trailed peers since the beginning of 2013, left after his deputies threatened to quit and management debated his ouster, according to people familiar with the matter.
Janus shares soared a record 43 percent on the day Gross announced his decision to join. They’ve since pared those gains, declining 8.7 percent this week to $14.50 at 3:58 p.m. in New York. Katz maintained his “neutral” rating on Janus stock with a target of $14.50 per share.
“To start, Bill has requested a trader and a client-facing professional, but we are in the very early days of these efforts, and we will continue to learn, with Bill, how he might best be served,” Steven Shapiro, a spokesman for Denver-based Janus with Communications Strategy Group, said in an e-mailed statement.
In a report dated Oct. 2, Morningstar analyst Sumit Desai said Gross has long relied on Pimco’s vast resources and that Janus couldn’t match those “anytime soon.”
He said investors should keep that in mind when considering putting money with Janus, and existing clients of should think about Gross’s impact on the company, noting that its fixed-income chief investment officer Gibson Smith runs the unit “quite capably.”
Additional Resources
“I certainly think Janus will give Gross additional resources as his asset base grows,” Morningstar’s Desai said today in an e-mail. “There’s going to be a ramp-up phase here, so there’s no need for investors to rush and invest a lot of money into this fund on Day 1.”
The Pimco Total Return Fund, formerly run by Gross, saw record withdrawals of $23.5 billion in September, the largest of which occurred on the day of Gross’s departure, the Newport Beach, California-based bond manager said.
bloomberg.com
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