Denver-based Janus Capital Group built its reputation as a mutual fund giant by aggressively researching the companies in which it invested.
But when it came to now-defunct Enron Corp., Janus – like many others – was taken in by Enron’s story and rode the rollercoaster of its rapid rise and painful fall.
“Although Janus didn’t escape the entire decline of Enron’s stock value, as a firm we came out about neutral,” Blair Johnson, a Janus spokesman, said Thursday.
He said Janus portfolio managers started buying Enron stock in January 1999, when shares traded for less than $40.
Janus’ ownership of Enron peaked in March 2000, when Enron was in the $80 range. At the time, some Janus money managers began to sell shares of Enron to lock in profits, Johnson said.
But some Janus funds held onto Enron shares as the stock price plunged throughout 2001.
As of June 30, 2001, Janus owned 42.8 million shares of Enron, ranking it as Enron’s biggest institutional shareholder, according to a Denver Post story that cited Thomson Financial.
By Sept. 30, 2001, with shares trading in the $30 range, Janus still owned 41 million Enron shares, Johnson said.
Janus then began shedding shares more quickly, and by November had reduced its position to 15 million Enron shares, Johnson said. Janus eventually sold its last share of Enron stock by Thanksgiving 2001, he said.
Janus wasn’t the only mutual fund company fooled by Enron.
Putnam Investments, Alliance Capital Management, Barclays Global Investors and Fidelity Investments each owned at least 2 percent of Enron shares in 2001, according to Bloomberg.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
