George Soros pulls $500 million investment from Bill Gross fund

Redemption marks setback for the Janus fund manager, whose fund is down 1.2% this year.
JAN 07, 2016
George Soros's firm pulled almost $500 million from an account run by Bill Gross, money it invested last year after the bond manager left Pacific Investment Management Co. to run a new fund at Janus Capital Group Inc., according to a person familiar with the matter. Data from eVestment show that an unidentified institutional investor redeemed $490.1 million from the global unconstrained bond strategy run by Mr. Gross at Denver-based Janus, Pensions & Investments reported earlier. The money was pulled by Soros Fund Management, the firm overseeing the wealth of the billionaire investor and philanthropist, said the person, who asked not to be identified. The redemption by one of the best-known money managers is a setback for Mr. Gross, who has struggled to attract assets at his new fund amid mediocre returns in his first year. Mr. Gross's fund, the $1.38 billion Janus Global Unconstrained Bond Fund, has declined 1.2% this year, trailing 71% of similar funds, according to data compiled by Bloomberg. Mr. Gross personally invested $700 million in the unconstrained fund, according to a January filing. Officials for Soros, Janus and eVestment declined to comment. The Wall Street Journal reported earlier today that Soros was the unidentified investor that redeemed from Mr. Gross's strategy. https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2016/01/CI102271112.JPG" Quantum Partners, a private vehicle managed by Soros Fund Management, invested $500 million in a separate account with a strategy similar to Mr. Gross's unconstrained fund, Janus said last year. Scott Bessent, Mr. Soros's chief investment officer, visited Mr. Gross in Newport Beach the week after he joined Janus, a person familiar with the matter said at the time. Mr. Bessent, who's been overseeing Soros's fortune for the last four years, will leave at the end of 2015 to start his own hedge-fund firm, Key Square Group.

Latest News

Mariner discloses cloud breach impacting nearly 9,000 individuals
Mariner discloses cloud breach impacting nearly 9,000 individuals

A November hacking incident involving cloud apps used by three employee exposed names, Social Security numbers, and other account data, the mega-RIA said.

Merrill broker, whose name was in the Epstein files, has left the firm: Reports.
Merrill broker, whose name was in the Epstein files, has left the firm: Reports.

Paul V. Morris worked at multiple firms across Wall Street and most recently in Manhattan for Merrill Lynch.

Andrew Left found guilty of securities fraud scheme
Andrew Left found guilty of securities fraud scheme

Convicted by an LA jury on 13 of 17 counts, the Citron Research founder and activist short seller now is now facing a statutory 25-year federal prison sentence.

Wealthspire's Ground Control targets UK golf market with Arena Wealth deal
Wealthspire's Ground Control targets UK golf market with Arena Wealth deal

The deal marks Ground Control's second UK transaction in under two years as US wealth platforms race to stake out overseas territory.

The most expensive investing mistake has nothing to do with markets
The most expensive investing mistake has nothing to do with markets

Investors' tendency to choose external goalposts can seriously impact their odds of long-term success – and they might not even know it.

SPONSORED Estate planning isn't a service add-on. It's your retention strategy.

As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.

SPONSORED Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.