In an announcement made late on Friday, the Pacific Investment Management Company (PIMCO) named Daniel Ivascyn as its new chief investment officer.
The world's largest bond fund revealed the appointment after Bill Gross surprised Wall Street by resigning from the position, saying that he was heading to the much smaller firm Janus Capital instead.
Gross co-founded PIMCO, which manages an estimated $2tn (£1.2tn) of assets, in 1971. In his new role at Janus he will be manager of a global unconstrained bond fund. He is due to start on 29 September.
He said he looks "forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated organisation".
Ivascyn, the man who will take over from Gross, joined PIMCO in 1998 and has been deputy chief investment officer since 21 January this year.
According to Bloomberg, his most recent project at the company has been managing its $38bn income fund. In 2013 he was named one of the two bond fund managers of the year by investment management firm Morningstar, alongside Alfred Murata.
Before joining PIMCO he worked at the asset-backed securities unit of Bear Stearns. Previously he had worked at T. Rowe Price and Fidelity Investments.