Tags: short | sellers | Janus | Gross

Short Sellers Dive Into Janus, Despite Addition of Gross

By    |   Tuesday, 21 Oct 2014 11:25 AM

The Janus Capital Group mutual fund that's being managed by ex-Pimco star Bill Gross is raking in the cash, but the same can't be said for Janus stock.

Gross left Pimco for Janus last month, and the firm has suffered a 7 percent increase in the percentage of its shares outstanding on loan, according to Markit, CNBC reports. That makes Janus the seventh most-shorted North American company reporting its earnings this week.

Apparently not everyone believes in the magic of Gross, who had a stellar long-term track record managing Pimco's Total Return fund.

"There's clearly a debate about what the impact of Mr. Gross being added to the platform will be," Jefferies analyst Daniel Fannon tells CNBC. "People are going to want to see how [Gross] does and make sure the infrastructure is there for him before they write checks."

Fannon believes in Gross. He rates Janus shares a buy and has a $17 price target for them. The stock was trading at $14.29 Friday morning on the Nasdaq.

Gross could help Janus beyond its bond activity, given the positive buzz he has carried to the company, Fannon explains.

Morningstar analyst Greggory Warren also thinks Gross will be good for Janus. "We expect the hiring of Bill Gross to have a positive impact on Janus' ability to attract and retain assets, especially fixed-income assets," he writes on Morningstar.com.

However, Warren adds, "While Janus has received a boost from the hiring of Bill Gross, it is still at its core an equity manager with poor fund performance hampering its ability to generate flows."

Warren puts Janus' fair value at $15.

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The Janus Capital Group mutual fund that's being managed by ex-Pimco star Bill Gross is raking in the cash, but the same can't be said for Janus stock.
short, sellers, Janus, Gross
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2014-25-21
Tuesday, 21 Oct 2014 11:25 AM
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