Baha helped Jeffrey Gundlach turn DoubleLine Capital into a $100 billion asset management firm.
The stock picker, known for beating the S&P 500 Index for 15 straight years when he ran the Legg Mason Value Trust, will buy Legg Mason's stake in LMM, an investment adviser that he and the company jointly own.
The legendary money manager is losing his No. 2, Kumar Palghat, who will become co-manager of a new Janus Short Duration Income ETF.
The turn to an outsider marks the latest twist in a struggle to regain footing after a steep decline.
Johnson has overseen the $849 million Pimco EqS Long/Short Fund, which takes positions in stocks he selected, since its 2003 inception at his previous firm.