Janus to dilute stake holders?
From The Los Angeles Times
Shares of Kansas City Southern plunged 9% yesterday after Steven Eisman, an analyst at CIBC World Markets, said that the railroad wanted to spin-off Janus Capital Corp. Despite the market's reaction, rumors about the railroads intentions have been widely circulated for months. Janus wants to form a company called Stilwell Financial, Inc, according to the paper. Eisman's comment caused the stock to drop when he reportedly said, "It's a war and Janus is willing to take some Draconian steps to get what they want . . . including issuing so much phantom stock to its employees that Janus' profit margins would be crushed."

Lag the Lehman; Get a raise
From The Wall Street Journal -- password needed
The WSJ takes fixed income managers to task for getting raises even as they underperform their bogies. Russell Reynolds & Associates, a New York executive search firm, is quoted at pegging fixed-income mutual fund managers median total compensation at $255,625. Yet managers at the top 10 mutual fund companies will take home $902,222, and senior managers will net as much as $1.7 million in base pay and bonuses. The numbers are based on a July survey conducted jointly with the Association for Investment Management and Research.

Sell funds, buy home
From USA Today
John Waggoner is on the case of the disappearing cash flow into funds. He points out in today's column that flows are off by $34 billion through the end of June. Why? He argues that it is not investors switching from funds to stocks causing the dwindling torrent. Rather, he claims that investors are cashing out of funds to but houses and cars. He points out that new fund sales are up 24% so far this year. So far so good. Yet redemptions have exploded -- rising 51% from 1998 levels. On the surface at least, it seems that winners are taking some off the table. 

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