In the go-go 1990s, Denver emerged as a center of the booming mutual-fund industry. The stock market was soaring, and a handful of Denver-based money managers developed high profiles as a result.
But when the bull market ended in March 2000, darker days loomed. A market-timing scandal rocked Denver’s once-thriving fund industry, producing a string of layoffs and company closures.
The sign on the side of Invesco Field at Mile High stadium is a sobering reminder of the withdrawal of Invesco Funds Group from the investment market, and Janus Capital Group – while still large and profitable – is just beginning to see investment inflows.
As a wobbly stock market continues to search for its footing, some Denver superstar money managers from yesteryear have changed companies. Others have moved out of the state – or on to new careers.
Here’s where they are now:
Thomas H. Bailey
It has been a good year for Tom Bailey.
Bailey, who founded Denver-based Janus in 1969 with a few hundred thousand dollars, resigned as chief executive from the mutual-fund company in 2002.
Since then, the reclusive Pittsburgh native has retreated to Aspen, where he owns a sprawling estate.
This year, Bailey earned the title of the world’s 620th-richest man, with an estimated net worth of $1 billion, according to Forbes magazine. It’s the first time since 2001 he has made the list.
Friends say he is trying to breed the “perfect cutting horse,” a type of equine used in ranching and cattle handling.
Helen Young Hayes
Helen Young Hayes earned a reputation as a star stock picker when she managed the Janus Worldwide and Janus Overseas portfolios.
She left the fund company in April 2003, but Janus’ most well-known fund manager didn’t go far. She still lives in Denver, where she is a stay-at-home mom.
Friends said she is working on a deal with another former Janus star, Warren Lammert, who is now with Boston- based hedge fund Granite Point Capital.
Neither the media-shy Hayes nor Lammert could not be reached for comment.
James Craig
James Craig spent 17 years at Janus, eventually becoming its chief investment officer. He resigned in September 2000 and has since moved to Virginia with his wife, Rebecca.
Craig, an Alabama native, remains on Janus’ board and regularly attends meetings in Colorado. He is active with his foundation, the James P. and Rebecca T. Craig Foundation, a private nonoperating foundation based in Denver that had assets of $5.38 million in early 2004 and income of $67,409.
The foundation has assisted groups such as Aurora’s CASA Advocates for Children, Denver’s Kids In Need of Dentistry and the University of Denver.
Tom Marsico
Few former Janus stars have had as much success as Tom Marsico. He launched his own money-management shop, Marsico Capital Management, in Denver after he left Janus in the late 1990s.
While growth funds have somewhat fallen out of favor, Marsico’s flagship large-cap growth fund yielded an 8.9 percent return in the past year.
The solid performance of the Marsico Growth fund earned it a slot among USA Today’s 2005 Mutual Fund All- Stars.
Erik Borgen
Erik Borgen, the former CEO of Dreyfuss Founders Fund, has gone from investing other people’s money to managing his own assets and a ski resort.
Borgen in 1998 founded Borgen Investment Group, with himself and family members as the company’s only clients.
Three years ago, the company purchased a ski resort and hotel in Norway, allowing Borgen to spend about 40 percent of his time in the Nordic country.
He also takes motorcycle trips around the globe, including recent trips to Spain, Portugal and Central America.
When asked about retirement, Borgen, 67, said, “No. I’m going to keep on trucking.”
Jerry Paul
In 1993, Jerry Paul had a tough decision to make.
He could take a six-figure salary with Invesco to manage its high-yield bond fund, or he could launch his own money-management firm.
He opted for the former, a decision that netted him the 1999 Morningstar fixed-income manager of the year.
After leaving Invesco in January 2002, Paul took the path from which he initially diverted. He now runs Quixote Capital Management, a hedge fund based in the Denver Tech Center.
Charlie Mayer
Charlie Mayer became a star trading stocks at Invesco, a reputation he parlayed into a gig managing money for Hollywood A-listers.
After he left Invesco in 2003, he headed west to Bel Air Investment Advisors, where he invested money for movie stars, musicians and athletes.
“You’d recognize the names in a heartbeat,” Mayer said of his clients, who he says he is legally barred from naming.
After a six-month stint in Los Angeles, Mayer moved to Boston to become director of U.S. portfolios for Pioneer Investment Management.
He still owns a home in Denver, where one of his daughters attends college.
Sandy Rufenacht
Fatherhood changes people, and Sandy Rufenacht suspects he will be no exception.
The former Janus High-Yield Fund manager left in 2003 to launch his own money-management company, Three Peaks Capital Management. The name comes from the three peaks – Longs, Pikes and Mount Evans – that are visible from the company’s Denver Tech Center office.
That change, along with the pending birth of his first daughter, Alexa Rae, has recalibrated how Rufenacht views investing.
“All of a sudden you turn to the baby business and say, ‘Who makes all this stuff?”‘ said Rufenacht, 40. “Fatherhood can channel you in a different direction.”
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
