Last week's news that Bill Gross would be heading to rival Janus Capital Group was welcome news to Janus shareholders as the stock surged 43% on Sept. 26.
While there is no guarantee PIMCO investors will follow the 70-year-old Mr. Gross to Janus, the firm is poised to see an explosion of fixed-income flows, compared to its last few quarters.
If only 5% of the PIMCO Total Return Fund's $222 billion assets follow Mr. Gross to Janus, it will eclipse Janus' total fixed-income flows over the last three years.
Janus' net long-term fixed-income flows totaled $9.7 billion in the last 12 quarters -- a drop in the bucket compared to the $400 billion in total outflows from PIMCO that Morgan Stanley recently estimated.