High-profile bond manager Bill Gross put more than $700 million of his own money into a fund he manages at Janus Capital Group Inc., the firm’s chief executive said.
Gross, known as the bond king, invested the money in Janus' Global Unconstrained Bond Fund, Janus Chief Executive Richard M. Weil said.
“He believes in eating his own cooking,” Weil said on a conference call. “We think that should give clients additional confidence in what we do.”
Gross last year abruptly quit Newport Beach-based Pacific Investment Management Co., the firm he co-founded and built into the world's largest fixed income money manager.
He left in September amid reported infighting and joined Denver-based investment firm Janus.
The news of Gross’ investment came as Janus reported fourth-quarter earnings. The company said net income was $46.7 million, or 24 cents per share, compared to $38.3 million, or 21 cents per share, a year earlier.
For the first time since the second quarter of 2009, Janus reported positive net inflows, which totaled $2 billion in the fourth quarter.
The Wall Street Journal previously reported that since Gross’ arrival at Janus, most of the inflows in the Global Unconstrained Bond Fund were from the office of Gross' personal financial adviser in La Jolla.
Janus shares rose $1.95, or 11.98%, to $18.23 in early afternoon trading on Wall Street.
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