From: weiser@pogo.den.mmc.com (Matt Weiser)
Subject: Re: Janus Group
Organization: Martin Marietta WIS
Distribution: na
Date: Tue, 10 Nov 1992 21:48:05 GMT

In article <9395@blue.cis.pitt.edu.UUCP>, gunner1+@pitt.edu (Jayant Rajgopal) writes:
> 
> I just got some stuff from Janus saying that they're introducing three
> new funds - a growth fund (investing primarily in medium sized companies),
> a growth and income fund, and a bond fund of some sort.  I'm wondering if
> this is good news or bad news.  I've got money in several of the existing
> Janus funds, and I've found their service as well as their record very good
> (now if they'd only move out of Colorado, things would be perfect :-)).
> However, my concern is that with the rapid growth in the number of funds
> in the family they may not be able to provide the kind of performance that
> they have in the past.  I tend to think that families with relatively fewer
> funds perform better overall because the fund management can spend more
> time on investment.  For example Vanguard and Dreyfus with their large array
> of funds  have some star performers but lots of dogs which drag down the  
> overall record, but smaller groups like Janus and 20 Century seem to have
> a better overall performance record.  Maybe I'm wrong...
> 
> Then again, I guess more funds in a group implies more options in the
> kinds of investments you want, and more flexibility in moving stuff around
> (if you're the kind who takes the trouble to do that frequently).  
> 
> Comments ??
> 
> --jr--

Two ways to look at this.  First, Janus has gained lots of marketing
signifigance with their performance over the past 2 years, expecially
last year.  They are using this marketing signifigance to expand their
business by opening new funds.  Fidelity is the master at this.  This
shows that Janus has a healthy business sense for the continued growth
of the company.  Note that marketing signfigance and statictical 
signifigance are two different things.  If they beat the S&P by 20% for
about 40 years they would be better than the market in a statistical sense.
Too bad we don't have 40 years to wait around to find out, so we have
to use our best judgement.  The theory behind this is that if you have
enough funds, you are bound to be #1 at something, and then you print
big bold headlines showing how you were #1.  Everyone reads this and
sends $$ to all of the funds.

The second way to look at it is the way I like to look at it.  First off,
the new funds fill market niches that Janus is lacking.  It fills out
their portfolio of funds. If you like dealing with Janus, you can now
go to them to meet more of your needs.  Second, the three new funds are
being run by current Janus managers, and if you like what they have done
in the past, you should like the way the do things with the new funds.
( The Enterprise fund is run by Jim Goff, 28, Yale grad, Ron Speaker
runs another * I think the short term bond fund * 27, University of
Colorado Grad, CFA, and I don't know off hand the name of the third
fund manager )  The new funds give these managers the ability to invest
in companies that they think have potential but were unable to invest
in before.  For example, if Jim Craig finds a stellar company when he
is looking for the Venture fund, but the market cap is too high, he
can now show it to Goff who can invest in it in the Enterprise fund.
The same goes for the other funds.

I met with Goff (I really want a job as a financial analyst, in case
anyone knows any mutual funds looking for one) and was impressed
with the management style of him and the others.  I think this
expansion shows that Janus is doing well.

Matt Weiser
weiser@pogo.den.mmc.com
Newsgroups: misc.invest