Pimco likely to pick Dan Ivascyn to succeed Gross

Deputy chief investment officer has inside track to succeed 'Bond King' as CIO

Pacific Investment Management Co. is likely to name Daniel Ivascyn chief investment officer of the $1.97 trillion bond firm after Bill Gross left to join Janus Capital Group Inc. (JNS), according to a person familiar with the matter.

Pimco’s board was considering Ivascyn as CIO as of last night, said the person, who asked not to be identified because the news isn’t yet public. Dan Tarman, a spokesman for Newport Beach, Calif.-based Pimco, didn’t immediately respond to an e-mail seeking comment.

Mr. Ivascyn, who runs the $38 billion Pimco Income Fund, has beaten 99% of his peers over the past three- and five-year periods, according to data compiled by Bloomberg. In January, Morningstar Inc. named Mr. Ivascyn and the co-manager of the fund, Alfred T. Murata, fixed-income managers of 2013.

Pimco in January named Mr. Ivascyn one of its six deputy CIOs, reporting to Mr. Gross, in a management reorganization following the departure of former chief executive Mohamed El-Erian. An expert in mortgage-backed securities, Mr. Ivascyn burnished his reputation after the 2008 financial crisis amid a recovery in the housing market.

Before joining Pimco in 1998, Mr. Ivascyn worked in the asset-backed securities group at Bear Stearns Cos., as well as at T. Rowe Price Group Inc. and Fidelity Investments. He has a bachelor’s degree from Occidental College in Los Angeles and a master’s of business administration degree from the University of Chicago.