Bill Gross got a co-portfolio manager to support his global unconstrained bond strategy for Janus Capital Group Inc.
Denver-based Janus last week announced it paid $85 million to acquire a 51% stake in Kapstream Capital Pty Ltd, a Sydney, Australia-based unconstrained bond manager that also has operations in Newport Beach.
Kapstream cofounder Kumar Palghat will serve as co-portfolio manager in support of Gross, who will continue as the primary portfolio manager of the Janus Global Unconstrained Bond Fund. Kapstream’s staff will consolidate with Janus’ at the latter’s office in Newport Center.
Gross has been managing the unconstrained fixed-income strategy since joining the firm in September following his departure from Pacific Investment Management Co.
He cofounded Pimco in 1971 and helped grow the bond-fund management firm to nearly $2 trillion in assets at one point.
Palghat is a former Pimco executive. He joined the firm in 1997 at its Newport Beach headquarters and moved to Sydney to serve as head of portfolio management for its Asia Pacific businesses from 2001 until starting Kapstream in 2006 with Nick Maroutsos, another Pimco veteran.
Janus, which is known more for its stock funds, had about $190 billion in assets under management as of March 31. That included about $1.5 billion in the global unconstrained bond fund managed by Gross.
Kapstream’s $6.6 billion in assets will boost Janus’ global macro fixed-income assets under management to about $8.7 billion. Janus said it has the option to buy the remaining 49% stake in Kapstream.
“I look forward to working with my old colleague, Kumar Palghat, and the rest of the Kapstream team as we deliver value for our clients,” Gross said in a statement.
Palghat said the “opportunity to work with Bill again and create a truly global team was not one we could pass up.”
The arrival of Palghat and his Kapstream team will triple the number of staff of the Global Macro Fixed Income team under Gross to 15.
