Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (38995)	7/14/2001 4:08:07 PM
From: stockman_scott	Respond to of 65232

The Big Boys Have Been Raising Some Cash...LOL... _________________________________________________ Janus managers retreat to cash Semiannual report shows much higher percentage of assets put in greenbacks By Erika Gonzalez, News Staff Writer <<At Janus Capital Corp. cash is king. The company's latest shareholder report shows that many Janus portfolio managers have chosen to build higher cash reserves, rather than risk their assets in a continuing volatile market. More than half the company's 17 equity funds have increased their cash positions since last fall, according to the April 30 report. The Janus Global Technology Fund held the highest cash position, with nearly 25 percent of its assets in cash, up from 10.1 percent last October. The Janus Twenty and Janus Global Life Sciences also boosted their cash stakes by significant amounts. The Janus Twenty's cash position grew from 8.3 percent last October to 22.1 percent in April, while the Janus Global Life Sciences jumped from 5.1 percent to 15.1 percent. Those numbers are well above the industry average of 5.5 percent of assets held in cash, according to the mutual fund trade group, the Investment Company Institute. Janus portfolio managers have said that their increased cash positions reflect the fact that there are fewer investment opportunities in the market. Their reluctance to jump back into the fray isn't surprising, say industry experts. "It's making a slow turnaround," said Tom Roseen, a research analyst with Lipper Inc. "Rather than being V-shaped, the recovery has been more cup-shaped. I think we'll run sideways for awhile." The downturn in the technology sector, where so many Janus managers tend to cast their bets, might also explain why the company is keeping more cash on the sidelines than its competitors. "In the short term, we do not see signs of a fundamentally driven recovery in the tech sector," wrote Janus Global Technology Fund Manager Mike Lu to shareholders. "Frankly, we believe it will take some time for the oversupply situation to flow through the system and for end-customer demand to recover." The semiannual report details fund performance from Oct. 31, 2000, through April 30. None of the company's equity funds reported a positive return during the six-month period. To protect against further losses, several fund managers have scaled back their positions in once high-fliers such as Cisco Systems, EMC Corp. and JDS Uniphase. "In response to the changing environment, we have sold or reduced positions in companies whose earnings were most at risk," wrote Janus Overseas Fund Managers Helen Young Hayes and Brent Lynn. Hayes and Lynn cut their positions in telecommunications companies Alcatel and Ericsson, for example, because of "rapid slowing in the telecom equipment market." One of the biggest disappointments during the past six months was wireless network operator Winstar Communications Inc. The Janus Special Situations, Strategic Value and Orion funds all made heavy investments in the company, which was forced to file for bankruptcy in April. Janus, however, remains committed to some technology and telecommunications names, including cell phone maker Nokia. The company is a top 10 pick for eight of the company's funds. But Janus has bolstered its position in more defensive names, such as Citigroup Inc., Enron Corp. and Boeing Co. The company's investment committee, made up of founder Tom Bailey and several key portfolio managers, acknowledged that it should have moved faster toward safer havens: "In retrospect, we certainly could have reacted more quickly to the rapidly changing economic landscape. With that said, we're focusing our efforts on positioning our portfolios for what we think lies ahead, and we're very confident we're making the right decisions based on our extensive research.">> June, 2001