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 Soros Fund Management LLC, which Soros chairs, has invested $500
million in an account run by Gross at Janus Capital Group Inc, the
Denver-based firm said on its website on Thursday.
The money will be managed through a private investment vehicle named
Quantum Partners LP and invested in a separate account, Janus said.
The portfolio will follow the strategy that Gross is employing in
his Janus Global Unconstrained Bond fund, which has $443 million in
assets under management.
Soros Fund Management approached Gross after he resigned from Pimco
in late September, a person familiar with the situation said.
Gross co-founded Pimco in 1971 and built it into one of the largest
investment firms in the world, managing $2 trillion of pension,
endowment and retirement money.
"We are honored to be managing a new unconstrained strategic account
for Soros Fund Management LLC," Gross tweeted. "I & my team will
manage your new unconstrained strategic acct. 24h/day. An honor to
be chosen & an honor to be earned as well."
Soros Fund Management's chief investment officer Scott Bessent met
with Gross, the source said, adding that the fund considers Gross a
legend.
Soros Fund Management, founded in 1969 by George Soros, was reported
to be one of the most profitable firms in the hedge fund industry in
2010, averaging a 20 percent annual rate of return over four
decades.
Janus Capital Group posted $1.1 billion in net inflows in October,
the largest net deposits this year, after hiring Gross, one of the
bond market's most renowned investors.
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The Janus Global Unconstrained portfolio, which Gross started
managing in October, has attracted an estimated $364 million in
client deposits in the first full month since Gross' arrival,
bringing assets to $442.9 million through Oct. 31, according to
Morningstar data on Monday.
Janus shares hit session highs of $15.07 in rising volume in the
wake of the Soros news. The shares closed nearly 2 percent higher at
$15.03 on Thursday.
(Editing by James Dalgleish, Bernadette Baum and Andre Grenon)
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