Gross Expects to Start Janus Fund With $100 Million

Bill Gross expects to have $100 million in the unconstrained bond fund he is running for Janus Capital Group Inc. as of today, he said in an interview with InvestmentNews.

Gross, who abruptly left Pacific Investment Management Co. Sept 26, told the industry newsletter in an interview published today that he would have a team of five or six people at Janus, including a trader, a credit analyst and another portfolio manager.

Gross left Pimco after his deputies threatened to quit and management debated his ouster, according to people familiar with the matter. The departure of Gross, who co-founded Pimco in 1971, has prompted investors to review their investments with the firm and move money to competitors.

“They sort of forced my hand, and although I thought I gave them lots of opportunity to downscale me and do anything they wanted to do,” Gross said of his departure from Pimco in the InvestmentNews interview. “I finally saw the light and said, ‘Hey, the routine’s got to change.’ ”

The Pimco Total Return Fund, which Gross managed since it was created in 1987, suffered an estimated $23.5 billion in redemptions in September, Pimco said last week. Two other large funds that Gross ran, the $18.3 billion Pimco Unconstrained Bond Fund, and the $20 billion Pimco Low Duration Fund, also experienced withdrawals.

Gross said in the interview that his competitive fire remains undiminished.

“I’m in it to whip the pants off anybody competing on the same football field,” he said.

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