Nokia Is Falling, and Janus Feels Its Pain

Finnish cell-phone titan Nokia(NOK Quote) warned that a gush of new products will slacken its third-quarter earnings, and its shares cratered in premarket trading. But you only own mutual funds, so what do you care? Right?

Wrong. If you're one of the more than four million investors who own shares of a Janus fund, you've got plenty of reason to care. That's because Janus has a titanic bet on Nokia and the wireless communications sector.

At the end of the first quarter, Janus was far and away the largest institutional holder of Nokia, with a 5.7% stake in the company, according to bigdough.com, a Web site that tracks institutional stock ownership. That's a $13.4 billion stake, which is more than No. 2 and No. 3 holders AXA Financial and Fidelity combined. ...