Pimco lures away head of Man Group to be its new CEO

LONDON (AP) - Pimco, one of the world's biggest bond investors, has nabbed the head of hedge fund giant Man Group to be its next chief executive.

The firm based in Newport Beach, California, said in a statement Wednesday that Manny Roman will replace current CEO Douglas Hodge, who will become a managing director. The firm boasts $1.5 trillion in assets under management as of June.

Luke Ellis will replace Roman at Man Group, one of the world's largest publicly-traded alternative asset managers.

Roman said he looked forward to building "on Pimco's success in what is a rapidly changing industry."

"Man Group is an excellent business and I am sad to be leaving, but I have decided to accept this new, outstanding opportunity and move back to the U.S. where my family is based," Roman said.

The appointment comes after a tumultuous time for Pimco, whose full name is the Pacific Investment Management Co. and which is one of the biggest names in fixed-income mutual funds. Its co-founder and billionaire, Bill Gross, left the firm in 2014 in an acrimonious split he claimed was due to an internal power struggle.

Gross co-founded Pimco in 1971 and ran its Total Return Fund. He left to join Janus Capital, a smaller rival.

A Wall Street legend, Gross had championed deft moves in and out of bonds, earning him the title "Bond King," attracting billions to his fund. But his management style caused issues at the end of his tenure.