Will Janus Capital Group Inc (NYSE:JNS) Really Benefit From Bill Gross’s Appointment To Boost Bond Investments?

Benjamin Roussey - October 6, 2014

Boston, MA 10/06/2014 (wallstreetpr) –  There are doubts in some circles about bond king Bill Gross’s ability to lift the performance of Janus Capital Group Inc (NYSE:JNS) in bond investments. A week after he moved to the company following his leaving Pacific Investment Management Company or PIMCO in the lurch, analyst started to believe that there could be a disappointment in store for the investors.

Analyst Comment

Citigroup Inc (NYSE:C)’s analyst, William Katz, believes that Janus Capital Group Inc (NYSE:JNS) would not stand to gain from the appointment of Bill Gross as much as analysts’ and traders think, Bloomberg reported. There was already $25 – $50 billion expectation of new assets at Janus Capital Group Inc (NYSE:JNS). His comments came on the heels of an article from Morningstar, Inc. (NASDAQ:MORN) indicating that Gross had sought support from a trader and one client to help him.

The report in Morningstar quoted Analyst, Sumit Desai, saying that Gross was depending on immense resources of PIMCO’s. However, he would not be able to enjoy the same level of resources in Janus Capital Group Inc (NYSE:JNS) at least in the immediate future. The Morningstar analyst cautioned investors to ponder over these issues before parking their money with Janus Capital Group Inc (NYSE:JNS). These apart, current clients should also think on the impact of Gross’s on the company. Desai also noted that Janus’ Chief Investment Officer for Fixed-Income, Gibson Smith, was running the division quite capably. The company has already indicated the Gross’ would be supplementary.

Gross’ fund in PIMCO was trailing behind its peers after the start of the year 2013. His deputies in PIMCO also reportedly threatened to resign. His leaving the company could have been due to the management’s debate about ousting him.

Janus May Give Resources

Having appointed to head the division, Janus Capital Group Inc (NYSE:JNS) would have to provide additional resources. Desai that there was going to be a ramp-up stage here, and, therefore, advised investors not to rush in investing big money from day one.

PIMCO has seen withdrawals of $23.5 billion in September with the biggest withdrawal happening on the day Gross indicated his departure.

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Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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