Mutual funds managed by Janus Capital Group are poised to finish the year in the black, a feat the Denver-based firm last accomplished in 2000.
Janus attracted $1.8 billion to its mutual funds during the first four months of 2007, according to data recently released by Boston-based Financial Research Corp. Janus had previously watched investors pull money from its funds following the bear market earlier this decade and the firm’s involvement in an industrywide trading scandal.
Janus oversees $176 billion, less than half its peak before the Internet bubble burst in 2000.
Janus chief executive Gary Black told Bloomberg News last week that the company is optimistic about inflows, in part because of the strong returns posted by many of its funds.
“Just getting Janus back to being positive has been a major goal of ours,” Black said. “We think it will turn positive this year.”
Janus officials on Monday declined to make specific predictions about the company’s inflows or the net amount of money invested.
“We’re certainly confident that if we continue to deliver strong performance, flows will follow,” said Shelley Peterson, a Janus spokeswoman.
Janus-managed funds broke even in the first fiscal quarter of 2007, Peterson said.
Some analysts said they were not surprised by Janus’ turnaround.
“Their performance in the aggregate has been fantastic,” said Mark Lane with William Blair & Co.
He said investors might be ready to move back to large-cap growth, which, from a return and flow perspective, have lagged value funds.
Janus shares have surged of late, closing Monday up 72 cents, or 2.5 percent, to $28.85.
Janus in recent years has received a boost from its Intech unit, an independently operated subsidiary that uses complex mathematical formulas to select stocks.
Janus owns 83 percent of Intech, which has attracted massive amounts of investor money and helped Janus Group post positive inflows since 2005.
Staff writer Will Shanley and Bloomberg News contributed to this report.
Staff writer A.J. Miranda can be reached at 303-954-1381 or amiranda@denverpost.com.
