Can Janus right itself, after a recent spate of PM defections?

Morningstar analyst Bridget Hughes apparently believes that the fund firm needs to do at least something.

In a Morningstarnote about Janus Capital Management [profile], Hughes dropped Janus' stewardship rating, from B to C, and the parent rating, from positive to neutral.

The ratings changes come after a recent spate of manager defections, which Hughes argues, "raise concerns about Janus' ability to keep investment strength in-house for the long term. It also raises questions about Janus' succession planning and is consistent with the revolving door to the CEO office since Janus' founder Tom Bailey left the firm in 2002."

The departures in question include those of Ron Sachs, who had been at the firm since 1996 left in May, along with Brian Schaub and Chad Meade. Schaub and Mede joined in 2000 and 2001, and managed Janus Triton and Janus Venture, which Hughes described as "bright spots" in the equity fund line.

On top of the PM departures, five CEOs have occupied Janus' office since Janus founder Tom Bailey left in 2002, Hughes wrote. Overall, the turnover makes Janus' identity less clear and drains it of its most talented people. Its fixed-income team, however, has shown some strength and continue to do good credit research.

To read more, click here. 

Edited by: Casey Quinlan


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