U.S. investors pull more cash from Bill Gross bond fund -Morningstar
NEW YORK (Reuters) - Investors yanked $188 million from the Janus Henderson Global Unconstrained Bond Fund, run by billionaire money manager Bill Gross, in June, marking four straight months of withdrawals, Morningstar Inc said on Wednesday.
The Janus bond fund’s performance has stumbled this year, with some share classes down nearly 7 percent and falling to the bottom of their peer ranking, according to Thomson Reuters Lipper research unit.
The $1.5 billion fund stands a third smaller than it was at its $2.2 billion peak earlier this year, with withdrawals for the year totaling $615 million, Morningstar said.
Janus Henderson did not immediately respond to a request for comment.
Earlier this year, Gross conceded to a “bad trade” betting that German government bond prices would fall while positioning for U.S. Treasuries to rise, but said he expected to recover those losses.
The unconstrained fund gives Gross wide latitude to invest globally, and he has often positioned for rates to rise. Yields on the safest intermediate bonds have largely fallen since May.
Gross, once considered Wall Street’s “Bond King,” co-founded Newport Beach, California-based Pacific Investment Management Co in 1971 but left abruptly in 2014 after a management rift and moved over to Janus.
Gross is worth $2.5 billion, according to Forbes magazine.
Reporting By Jennifer Ablan and Trevor Hunnicutt; Editing by Chizu Nomiyama and Diane Craft