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.