Pimco turns to Man Group's Roman to lead revival
By Maiya Keidan and Lawrence White
LONDON (Reuters) - Pacific Investment Management Co (Pimco) has poached Emmanuel 'Manny' Roman from Man Group EMG.L, the world's biggest listed hedge fund, as it tries to reverse a slump in fortunes since co-founder Bill Gross left the fund manager in 2014.
Pimco built its reputation largely through its management of fixed income securities, but has been under pressure to reverse a drop in assets under management since the abrupt departure of Gross, nicknamed 'the Bond King'.
California-based Pimco, owned by German insurer Allianz (ALVG.DE: Quote), managed $1.5 trillion as of the end of March, down from peaks of $2 trillion in the first three months of 2013.
The asset manager has tried to diversify its investor base in recent years to attract clients buying equity products but has struggled to replicate its success in fixed income investment.
Roman, 52, will take over as Pimco chief executive officer on Nov. 1, replacing the incumbent Douglas Hodge who will stay on as senior advisor.
"Manny's deep understanding of global markets, unique skills in investment management and appreciation of Pimco's macro-based investment process make him the ideal executive to position the firm for long-term success," Managing Director and Group Chief Investment Officer Daniel Ivascyn said in a statement.
The Newport Beach-based firm has parted with several top executives it hired to help compete more strongly in other asset classes, including Virginie Maisonneuve, and Neel Kashkari, who is now Minneapolis Federal Reserve President.
A Pimco memo seen by Reuters last month showed that the company, which employs about 2,300 people, was planning to cut some 3 percent of its workforce as it grappled with falling assets and the closure of some unpopular funds. Continued...