Internet Adds Octane to Janus' New Global Tech Fund

A first look at this year's hottest Janus fund.
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A first peek at

Janus'

new

(JAGTX) - Get Report

Global Technology fund shows it's a true Janus fund -- full of many of the same stocks found in the firm's other funds. But this mix is working better than the rest. It's Janus' top performer so far this year, up 41.8%, according to

Lipper

.

Fund manager Mike Lu isn't yet talking to the media about his portfolio, launched in December 1998. But the Janus style is evident in his stock picks so far. All but three of the fund's top 10 stocks at the end of February (the latest data available) show up on the top holdings lists of various other Janus funds at the end of March.

Two stocks in the Global Technology portfolio have helped to power the firm's hottest funds this year.

Internet navigator

Excite

(XCIT)

soared 270% this year through Monday. Janus'

(JAMRX) - Get Report

Mercury,

(JASSX)

Special Situations and

(JAOLX)

Olympus funds also benefited from the rise.

Exodus

(EXDS)

is up 173% year-to-date. The Web systems manager is also listed as a top stock in Janus'

(JAENX) - Get Report

Enterprise and

(JAVTX) - Get Report

Venture portfolios at the end of March.

The latest sector information available for Global Technology shows semiconductors as its weightiest bet at 10% of assets at the end of March. Internet software is next at 7.8%, followed by telecommunications equipment at 7.4%.

Denver-based Janus is among the first fund groups to break out the Internet as its own industry when reporting portfolio information. Internet plays are an integral part of nearly all of the fund firm's stock portfolios.

"I personally feel that the Internet is the megatrend of our time," says Warren Lammert, manager of Janus' Mercury fund. "If you look maybe 10 or 15 years ahead, the Internet will be so fundamental to so many industries you probably won't think about Internet companies -- you'll think about different companies that happen to be on the Internet. But today the Internet is new enough and there are enough pure plays where the focus on the Internet is important enough that it makes sense to view them as Internet companies."

Lammert's fund is Janus' second-best performer so far this year, up 30.2%. The manager says the Internet has played a meaningful role in the fund's performance.

Amazon.com

(AMZN) - Get Report

is its largest holding.

But Lammert says Mercury's "most important driver" has been his focus on cable stocks, including

AT&T Liberty Media

(LMGA)

,

Time Warner

(TWX)

,

Comcast

(CMCSK)

,

MediaOne Group

(UMG)

and

Cox Communications

(COX)

.