Gross Gets Co-Manager as Janus Acquires Firm of PIMCO Alum

"Combining the success and experience of Kapstream's unconstrained fixed income business with Bill's reputation as one of the world's most successful fixed income investors creates a powerful opportunity for our clients and for Janus Capital," Dick Weil, Janus' chief executive officer, said in a statement. Weil also worked at PIMCO.

Gross, who left PIMCO Sept. 26 and started running his current fund on Oct. 6, was praised by Weil as a game changer when joining Janus. He won a $500 million investment from George Soros and put more than $700 million of his own wealth, estimated at $2 billion by the Bloomberg Billionaires Index, into the fund. The fund suffered outflows February and May.

'Show Clients'

In April, Gross correctly predicted that yields on the 10- year German bund would climb, calling the trade "the short of a lifetime." He later acknowledged he did a poor job of putting his idea into practice.

Gross, who co-founded PIMCO in 1971 and built the PIMCO Total Return Fund into the world's largest mutual fund at its peak in 2013, has said he wants to prove that he hasn't lost his touch.

"I wanted to show clients and the world, to the extent that they're interested, that I can continue to produce a track record like I did at PIMCO," Gross said in a Bloomberg Television interview March 2. "I won't have five to 10 to 15 years leeway like I had at PIMCO to do that, but certainly for the next two, three, four years."