Last week, when we showed the latest fund flow data confirming that active, mutual funds have now experienced a virtually non-stop torrent of capital outflows for the past 14 months, with the redeemed funds used to fund ETFs and various other passive, “robotic” investments, we had one piece of simple advice: “learn to code.”
Dear active managers: learn to code pic.twitter.com/3ohkKNTKe9
— zerohedge (@zerohedge) April 27, 2019
Well, as it so often happens these days, what we thought was sarcastic humor turned out to be the bitter truth just days later, and as Bloomberg reported this morning, two Janues Henderson fund managers, Thomas Hanson and Hartej Singh, have requested to leave the company which until recently employed Bill Gross. They will be replaced by a new quantitative team of four, who will be recruited by the asset manager.
The hiring will “reflect the changing nature of fund management and how greater use of technology, statistical techniques and data management will augment our fundamental processes,” she said.
In short: the hiring will reflect that active, fundamental managers should, well, learn to code, as the only “managers” that matter in this broken, centrally-planned market are those who trade not on fundamentals but on big data, trends, and fund flows, especially that of the Fed.
As a result, Janus Henderson’s global credit team will go to six from eight fund managers (after losing its most notable credit manager, Bill Gross several months earlier). Thomas Hanson, who co-managed the European high-yield and “Credit Alpha” strategies, joined from Legal & General Investment Management in 2015. Hartej Singh has joined Pension Insurance Corporation as a portfolio manager, according to his LinkedIn profile. He was previously co-manager of Janus Henderson’s sterling-denominated credit funds.
As for the real reason why the asset manager is scrambling, Janus Henderson, which was created in the merger between Janus Capital and Henderson Group, suffered its sixth quarter of investor withdrawals in the first three months of this year. Which is why the fund will try anything just to stop the bleeding.
via ZeroHedge News http://bit.ly/300nbi2 Tyler Durden