Janus Rides on Gross Hire: New Fund Adds $770M in November - Analyst Blog

Global investment firm Janus Capital Group, Inc. (JNS) continues to benefit from the hiring of ‘Bond King' Bill Gross. According to Morningstar data released on Monday, the company's new mutual fund product managed by Gross – The Janus Global Unconstrained Bond Fund (JUCIX) – attracted an estimated $770 million from investors in November, driving up assets to over $1.2 billion.

Following the inclusion of the eminent bond manager, the fund had added $364 million assets in October, pushing assets to $443 million, compared to just $12 million in May. Notably, Gross took over as portfolio manager of the new fund on Oct 6, 2014.

The reported figure for November, however, does not include last month's $500 million investment by Soros Fund Management LLC, led by famous investor George Soros. While Janus Capital did not provide any specific data for November, it stated that the company witnessed net positive inflows across all its mutual funds. For the first time since the first quarter of 2010, Janus funds witnessed two consecutive monthly inflows in October and November.

Per a statement of the company, “We are doing exciting things here at Janus Capital and are pleased it is beginning to be recognized by clients and advisors." Further it added, “Our story features Bill Gross and his Global Unconstrained Bond fund, of course, but has been underway for some time and is much deeper than Bill alone.” Management sees potential in its institutional fixed income space in the near future.

Janus Capital also sees promising growth prospects owing to its recent acquisition deal. On Dec 1, the Denver-based firm completed the acquisition of VS Holdings Inc., the parent company of VelocityShares, LLC. The acquisition reflects Janus Capital's efforts to tap opportunities in the growing ETF market and also comes in line with the company's strategy of “intelligent diversification.”

We remain encouraged by the company's strategic initiatives to boost business. The company has the best-in-class investment boutique with potential for growth in assets under management (AUM) and revenue along with competitive leverage.

As of Sep 30, 2014, Janus Capital reported total AUM of $174.4 billion, up from $166.7 billion as of Sep 30, 2013.

Currently, Janus Capital carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the finance space include KKR & Co. L.P. (KKR), Monroe Capital Corp. (MRCC) and Banner Corp. (BANR). All these stocks sport a Zacks Rank #1 (Strong Buy).

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