Janus Capital Group (NYSE: JNS) likes to go against the grain of the mutual fund investment industry. For example, instead of being based on Wall Street, the firm has its headquarters in Denver, Colo. Then again, this may help its mutual fund portfolio managers filter out the noise – and focus on good investment opportunities.
All in all, Janus is known for its mutual funds that focus on growth-oriented strategies. This was certainly spot-on during the roaring 1990s. But of course, it turned cold after the dot-com bust.
Despite this, Janus now has a solid platform of funds for your IRA and 401k plan. It has about $173.5 billion under management and a diverse set of mutual fund offerings.
Here’s a look at some of the top funds that Janus has to offer:
Janus Triton
Want to find the next Starbucks (NYSE: SBUX) or Google (NASDAQ: GOOG)? Then take a look at the Janus Triton (MUTF: JGMAX) mutual fund, which has $2.5 billion in assets.
The portfolio managers – Chad Meade and Brian Schaub – focus primarily on small caps, with an emphasis on those companies that have long-term growth potential (the portfolio turnover is only 35%). The top holdings include VistaPrint (NASDAQ: VPRT), Ritchie Bros. Auctioneers (NYSE: RBA), SBA Communications (NYSE: SBAC) and Dresser-Rand Group (NYSE: DRC).
Janus Overseas
Of course, a big source of growth has been in emerging markets, especially in China, Brazil and India. These countries are remaking their economies and investing significantly in their infrastructures.
One of the best players in this segment is the Janus Overseas (MUTF: JDIAX) mutual fund, which has $14.8 billion in assets. Although, it is not a pure-play on the emerging markets. The portfolio is balanced with equities from developed markets, like the U.S. and Europe. But this has helped to reduce volatility.
Janus Fund
Janus has a reputation for taking risks. But there is one offering that takes a more conservative bent: the firm’s flagship Janus Fund (MUTF: JDGAX).
True, the fund looks for growth – but often from larger operators. Some of the top holdings include Microsoft (NASDAQ: MSFT), eBay (NASDAQ: EBAY), Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG).
For the most part, the Janus fund has posted solid gains. Over the past five years, the annual average return was 10.65%.
Janus Balanced Fund
It’s common for investors to have too many mutual funds. This can increase costs and lower diversification. To deal with this problem, an investor can look at a balanced fund, where the portfolio manager determines a good mix of cash, stocks and bonds.
A good option in this category is Janus Balanced (MUTF: JDBAX), with $7 billion in assets. The fund generally sticks to the traditional 60%/40% split among stocks and bonds. Also, the focus is primarily on large-cap companies. But the bond portfolio tends to have a concentration on higher risky securities, which has helped to boost yields.
Janus Flexible Bond
While Janus is known for its stock-picking prowess, the firm also has strong talent with bond investing. One of the standout offerings is the Janus Flexible Bond (MUTF: JDFAX) mutual fund, which has $3.3 billion in assets.
Portfolio managers Gibson Smith and Darrell Watters are pros when it comes to sophisticated analysis. Essentially, they try to find opportunities where the pricing does not reflect the underlying fundamentals. Then they will wait for the markets to catch up.
The strategy has worked. Over the past ten years, the average annual return was 6.46%.
Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.
