A pair of high-profile portfolio managers have resigned from Janus Capital Group, the latest change at the Denver-based mutual-fund giant since chief executive Gary Black took the reins Jan. 1.
The fund managers, Blaine Rollins and Claire Young, recently submitted their resignations, which are effective June 30, sources told The Denver Post.
A Janus spokeswoman, Shelley Peterson, confirmed the resignations Wednesday. She said the company will send out a press release today announcing the departures.
She said Rollins, 39, and Young, 40, are leaving to “devote more time to personal pursuits,” including family and charity.
“This moment is bittersweet for me,” Young said in a statement. “For the last 14 years my focus has been on delivering for shareholders, but now it’s time for me to focus on my family and on the philanthropic endeavors that I am most passionate about.”
The departures are “a surprise,” said Dan McNeela, an analyst at Chicago mutual-fund researcher Morningstar Inc.
He said both managers are relatively young but are longtime Janus employees. Rollins has worked at Janus since 1990, Young since 1992.
McNeela said Black had made it a priority “to keep his key people” when he was appointed CEO. Black came to Janus in 2004 as its investment chief.
But he also observed that Janus has started to move away from superstar stock pickers and toward a team-based approach to managing its funds.
McNeela said the departures of Rollins and Young could signal a “red flag” to investors.
“It’s very important to have stability,” he said.
Janus spokeswoman Peterson said even after the departures of Rollins and Young, the average portfolio manager at Janus has been with the firm for 9.8 years.
Janus shares soared above $24 in April before the company’s first-quarter results disappointed Wall Street. Its stock price has fallen amid a broader market decline and closed Wednesday at $17.40, up 31 cents.
Janus manages $158 billion in assets. It has a market capitalization of $3.68 billion.
The recent resignations come after portfolio manager Mike Lu left in February. Lu, who had managed the Global Technology Fund for seven years, was replaced by research analysts Brad Slingerlend and Barney Wilson.
Rollins was reassigned in January from the $11 billion flagship Janus Fund to the much smaller Triton Fund. Rollins was replaced on the Janus Fund by David Corkins, formerly manager of the Mercury Fund.
The Triton Fund is up 1.5 percent year-to-date; the Janus Fund is down 1.4 percent.
“I have had the privilege of working with the greatest minds in our industry and I’m leaving the firm confident that my shareholders are in good hands,” Rollins said in a statement.
Young for nearly a decade has managed the $2.2 billion Olympus Fund. Young is the sister of legendary stock picker Helen Young Hayes, who left Janus in 2003.
The Olympus Fund is down 4.9 percent year-to-date.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
