Janus Capital has hired Bill Gross from Pimco. Cue pandemonium. Cue a 40% increase in Janus Capital’s share price. Cue recriminations over the huge fund outflows Gross presided over whilst at Pimco. Cue actual movements on the markets. Cue suggestions that Mohamed El Erian might now defy his daughter and go back to his old job, but maybe work a little fewer hours.
The suggestion is that Janus Capital is offering Gross a gigantic package. Gross received a $200m salary whilst at Pimco and he appears to have quit without any severance. He starts at Janus on Monday. Helpfully, Janus has set up a new Newport Beach office (close to Pimco’s office) to ease the transition.
It’s quite possible that Janus has blown its budget hiring Gross and that its other staff will find their pay squeezed in future. Conversely, it’s quite possible that Pimco’s portfolio managers will receive a huge pay hike now that expensive Gross has gone. But if you want to work for Janus Capital anyway, here’s who it likes to hire:
1. Ex-Pimco people
Dick Weil, Janus’s CEO, was managing director at Pimco from 1996 to 2010. Gross isn’t the first Pimco man to join him. There’s also Brad Campbell, a specialist in ‘private fund design’ who spent five years at Pimco. Or there’s William Rogers, a vice president in Janus Capital’s fixed income group who was previously Pimco’s head of operations and infrstructure.
2. CFA Charterholders
There are around 66 people listed as PMs and portfolio managers on Janus Capital’s website.
Around 30 of them are CFA Charterholders. So, no – you don’t strictly have to have a CFA Charter to follow in the footsteps of Bill Gross.
3. Harvard MBA- ex-corporate finance analysts from large banks who’ve spent some time in private equity
Janus’s website suggests that it doesn’t too much hiring. This year it’s only added two people: Bill Gross and Aaron Schaechterle. Aaron is an equity research analyst at Pimco who once worked as a corporate finance analyst for Barclays Capital before quitting for private equity before quitting for Janus. He has an MBA with a high distinction from Harvard and is a keen tennis player.
Janus likes to employ men. Of the 66 people listed on its website, we can only spot 6 women. Of 27 portfolio managers, only 1 is female. Gross will be in good (male) company, it seems.