Gross regains footing at Janus with bet on dollar

After a shaky first five months, Bill Gross is regaining his footing at Janus Capital Group Inc, helped by a contrarian bet that the dollar's rally won't continue.

Gross' $1.5 billion Janus Global Unconstrained Bond Fund has returned about 2.4 percent in the past month as Treasuries rallied and the dollar gave up gains against the euro. The rebound reversed losses in the first five months and leaves Gross beating 68 percent of peers since he took over on Oct 6, including the comparable fund at Pacific Investment Management Co, the firm that ousted him in September.

Gross, portfolio manager of the Janus Global Unconstrained Bond Fund, said in an interview that he's been betting for several months that the dollar would stop rising and the gap between US and European interest rates would narrow, a trade that hurt performance until markets turned a few weeks ago. His call contrasts with remarks by money managers such as Jeffrey Gundlach, who warned investors not to bet against the dollar.