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Investors Yank $23.5 Billion From PIMCO in 3 Days Amid Gross Exit

October 1, 2014 4:54 PM EDT

Market watchers feared it was bad, but details about net outflows at PIMCO suggest a possible worst case.

PIMCO announced after the close Wednesday that September monthly net flows for the Total Return Fund were estimated to be -$23.5 billion. Commenting PIMCO said, "Of note, the largest daily outflow occurred on the day of Bill Gross’s resignation from the firm, while outflows on the two following days were considerably smaller."

On September 26, Gross surprised the market by announcing he was leaving PIMCO to join Janus Capital (NYSE: JNS). Notably, markets were only open for three days in September after the news.

Gross left PIMCO following clashes with other management members at the firm. Tensions had been building for months after Mohamed El-Erian abruptly announced his resignation in January.

Commenting on his new Janus position, Gross said, "I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organization."



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William H. Gross, Pacific Investment Management Company, LLC (PIMCO), Janus Capital, Mohamed El-Erian