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‘Bond King’ Bill Gross Steps Down

Janus Henderson Investors announced on Monday that William H. Gross has decided to retire.

Gross, 74, a co-founder of PIMCO, who had been a pioneer in fixed income investing for more than 40 years, says he will focus on managing his personal assets and $390 million private charitable foundation.

Gross served as managing director and chief investment officer at PIMCO since its founding in 1971. He joined Janus Henderson in 2014 (then Janus Capital) to manage the Janus Henderson Global Unconstrained Bond funds and related strategies, including its institutional Total Return strategy.

Gross filed suit against PIMCO in 2015, claiming that his dismissal from the company constituted a breach of contract and a breach of covenant of good faith and fair dealing. Gross said at the time that he suffered damages in excess of $200 million after he resigned and jumped to Janus Capital Group Inc., contending that he was pushed out of the company by a “cabal” of PIMCO managing directors who were “driven by a lust for power, greed, and a desire to improve their own financial position.” Gross also asserted that the executives wanted to offer more high-fee products to investors rather than PIMCO’s traditional bond funds.

The parties came to terms for $81 million. Additionally, PIMCO acknowledged Gross’s contribution as a co-founder of the firm and named him as a director emeritus of PIMCO’s charitable foundation. The company also dedicated a “Founders Room” in honor of Gross and others at its headquarters and established an annual “Bill Gross Award” through the foundation to recognize his philanthropy.

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