Bloomberg News reports that the legendary money manager is losing his No. 2, Kumar Palghat, who joined Gross as co-manager last July. Palghat will become co-manager of a new exchange-traded fund, Janus Short Duration Income ETF, while continuing to oversee other mutual funds, according to a statement Thursday.
Gross, 72, is returning as the sole chief, a role he held when he joined Janus Capital Group in 2014 and took over the Unconstrained Fund, which has outperformed 65% of its Bloomberg peers this year. The change allows Janus to continue its expansion into ETFs and tap the expertise of Palghat, a seasoned portfolio manager who spent five years at Pacific Investment Management Co. before starting his own investment firm in 2006.
“So far the only two things that have really been successful in the active ETF category are rock-star managers and short-duration bond funds,” said Eric Balchunas, an ETF analyst with Bloomberg Intelligence. “Janus is the only firm with both options available, but they are choosing to launch the latter. It is interesting they chose this before a Bill Gross ETF.”
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