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Can bond king Gross rebuild his empire?

Bill Gross, the founder of PIMCO and the king of the bond trading world, is leaving the company he founded and is headed to Janus Capital (JNS). Its stock is up 40% on the news.

Gross has been on the hot seat at PIMCO lately. Earlier this week reports surfaced that the SEC was investigating the ETF tied to the company's flagship "Total Return Fund" (BOND). It's the latest hurdle surrounding that fund which has experienced 16 consecutive months of net outflows.

Earlier this year Bill Gross lost his right hand man in Mohammed El-Erian after the then CEO of PIMCO walked away citing in more than one news article, a caustic work environment perpetuated by Gross.
Yahoo Finance spent the day at PIMCO this past summer speaking with Gross and others about those accusations. The now-former PIMCO chief shrugged them off saying, “Since January, obviously with some of the headlines, investors are probably concerned about the new PIMCO,” Gross told Yahoo Finance. “How do we work without Mohamed? What is Gross gonna do? Is he happy? Is he sad?”

Evidently things didn't work out too well. In a statement released today, PIMCO CEO Douglas Hodge said, "While we are grateful for everything Bill contributed to building our firm and delivering value to PIMCO’s clients, over the course of this year it became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take PIMCO forward.”

Despite the controversies, Gross's departure created waves in the investment community. "It is pretty amazing," Nick Colas of ConvergEx Group says in the attached video. "it's almost like if Warren Buffett left Berkshire Hathaway, it's that kind of move."

The question for the team at Janus, and for investors, is does Bill Gross have what it takes to rebuild his empire. From Colas's point of view, it's going to require more than one person to get the job. "It's a team sport, it is a matter of who's the right quarterback and obviously Bill Gross has been a great quarterback, but it also is about what kind of team can he bring in, both on the money management side and the marketing side, to make that fundraising effort really justify the price move we're seeing [in Janus]."

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