Kumar Palghat, the founder of specialist bond manager Kapstream Capital and a former head of Australian and APAC fixed income at PIMCO, quietly stepped down from his role as head of global fixed income in the newly formed Janus Henderson Investors last month, less than six months into the job. His replacement, an external hire, was announced last week.
Citing family reasons to do with the extensive travel required to manage the offices in the US, UK and Australia, for a global management role, a spokesperson for Janus Henderson said last Friday in a prepared note:
“Kumar stepped down from his role as Global Head of Fixed Income in August 2017 for personal reasons. Given the significant travel required between Sydney, London and Denver, he decided it would be best for his family and him if he returned to his role within the Kapstream organisation in Australia. The changes have no impact to the team’s investment philosophy, the way [Janus Henderson] conducts research or manages fixed income portfolios.”
Kumar launched arguably the most successful fixed income boutique in Australia’s history, in 2006, getting financial backing from Challenger International and then selling control to Janus Capital in mid-2015. Kapstream had A$8.7 billion under management at the time Janus bought its original 51 per cent. Janus and Henderson finalised their merger in May this year, formalising Kumar’s global role, although it had effectively already started by then.
Palghat was a pioneer in building alternative fixed income strategies in this region. His appointment as head of global fixed income for Janus Henderson was announced last year. What it meant, as an interesting aside, was that he became the boss of the famous Bill Gross, the founder of PIMCO who left that firm with some acrimony and joined Janus Capital in 2014.
Asked last year about his expected relationship with Gross, his former boss, Palghat said: “I don’t think anyone can ever be Bill’s boss.”
Last week’s announcement said that Jim Cielinski was the new head of global fixed income, effective November 1, overseeing the growth of the fixed income team.
Enrique Chang, Janus Henderson Global CIO, said: “Jim brings a wealth of experience managing fixed income investment teams and I am excited to work alongside such an accomplished investment professional…”
Cielinski had been in the industry for about 30 years and was most recently global head of fixed income for Columbia Threadneedle Investments, where he oversaw fixed income globally, including more than 165 investment professionals and US$190 billion in fixed income assets under management.
Kapstream, which has a number of mandates in the NZ market, recently launched a portfolio investment entity (PIE) version of its flagship fund fronted by Auckland-based alternatives multi-manager, NZAM.
In unrelated news, last week NZAM revealed chief investment officer, Greg Peacock, had left the firm.
Greg Bright is publisher of Investor Strategy News (Australia)