This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Janus Capital Group on the Mend

To assess the analysts, Goff began tracking the performance of each recommendation, whether or not a portfolio manager bought the recommended stock. He noticed that the analyst recommendations were outperforming many funds. To showcase the analyst talent, Janus began its research funds.

For Janus Research and Janus Global Research, teams of analysts deliver their best ideas. Goff coordinates the effort, but the picks all come from the analysts. The analysts try to find companies that will grow faster than the market expects.

Many businesses in the portfolio are undergoing changes that will result in improved earnings. The analysts give more weight to their best picks, but the assets are spread evenly among about 120 names. The largest stock in Janus Research is currently International Business Machines (IBM), which accounts for 2.8% of assets.

The analysts cannot place big bets on technology or any other sector. For the research funds, the industry sector weightings must match the figures for the fund benchmarks. The idea is to outperform the market by picking undervalued stocks, not by making sector calls.

Holdings in Janus Research include Roche (RHHBY), the drug giant. Janus analyst Andy Acker argues that pharmaceutical companies have become too cheap. The stocks have been stagnating because investors worry that too many drug patents have been expiring. That will cut down sales as patients turn to generics.

But Acker says that the patent expirations will peak next year. After that, the damage from generics could be less severe, and the big drug companies will continue generating steady cash flows. "The health stocks have underperformed for seven of the last eight years," says Acker. "Now shares are down, and the dividend yields are at 15-year highs."

Another holding is Express Scripts (ESRX), a pharmacy benefit manager. The company's sales will grow as demand for generics increases and more people are covered by health insurance.
Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $123.38 0.50%
FB $95.75 1.70%
GOOG $628.02 0.12%
TSLA $265.00 4.70%
YHOO $37.71 -0.33%

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.21 +25.57 1.24%
NASDAQ 5,087.5910 +47.8150 0.95%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs