Janus Funds: Venture Fund (JAVTX)
The name Janus Venture Fund (JAVTX) implies it’s some kind of tech mutual fund. In reality, JAVTX is really a small-cap growth fund with $2.4 billion in total net assets invested in 107 stocks including Wolverine World Wide (WWW) and Carter’s (CRI) — two of my favorite stocks, but hardly what you’d call technology stocks.
If you believe in a concentrated portfolio with the top 10 holdings representing a lion’s share of the net assets, then you might not like the fact its top 10 holdings are just 20% of the overall portfolio. However, when you consider that a small-cap fund like the Vanguard Small-Cap Index Fund (NAESX) has a weighting of just 2.5% for its top 10 holdings out of a total of 1,442, you realize that it’s plenty concentrated.
Still, Janus Funds’ JAVTX gets a five-star rating from Morningstar — the most stars possible, given out only to top mutual funds. Given the Venture Fund’s five-year annual total return of 28.5% — 480 basis points higher that the small-cap growth category — it’s not hard to imagine why.
As Janus Funds co-manager Jonathan Coleman likes to say, “We ask three questions about every stock we consider: 1. how do they create value?, 2. what is out differentiated view?, and, 3. what is the business worth under a range of scenarios?”
That’s a pretty simple and straightforward approach that clearly generates results.