Most recently updated from 01:30 p.m ET to include PIMCO management changes. This story was originally published at 9:01 a.m. ET.
NEW YORK (TheStreet) -- Bond king Bill Gross is leaving Pacific Investment Management Company (PIMCO) for Janus Capital Group (JNS) , in a surprise move that comes less than a year after a public split between he and former PIMCO CEO Mohamed El-Erian and amid SEC scrutiny into his flagship exchange traded fund.
Gross characterized his move to Janus as bittersweet and he said it came about as a result of piling administrative activities at PIMCO that distracted him from investment management. PIMCO thanked its founder Gross for 43 years of service at the bond manager, however, the firm said in a statement it had "fundamental differences" with Gross's leadership.
Watch the video below for more on Bill Gross' Exit from Pimco and what it means for bond investors:
At Janus, Gross will manage a new fund called the Janus Global Unconstrained Bond Fund. He will also establish offices for the asset manager in Newport Beach, Calif., according to a press release on Friday morning. Janus Capital Group stock surged over 40% in Friday trading to $15.89 on news of Gross's appointment. Shares in the company, excluding dividend payments, had fallen nearly 20% over the past five years.
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"I chose Janus as my next home because of my longstanding relationship with and respect for CEO Dick Weil and my desire to get back to spending the bulk of my day managing client assets," Gross said in a statement. "I look forward to a mutually supportive partnership with Fixed Income CIO Gibson Smith and his team; they have delivered excellent results across their strategies, which deserve more attention."