When the longtime star manager of a successful fund steps aside, it's often time for investors to take their leave, too. But Jim Craig's decision to hang up his spurs at the end of December, after 13 years of running Janus fund, should prompt little angst among shareholders.
For one thing, Craig's successor, Blaine Rollins, has been an assistant manager of the $31 billion fund for five years.Craig says Rollins, 32, is a bit more inclined than he is to buy stocks of companies with fast-growing earnings. But Craig is a growth-stock investor himself.
"You're not going to see a lot of change," Craig says.
Moreover, Rollins' solo track record managing Janus Balanced and Janus Equity Income is first-rate. Over the past three years, Balanced is the fourth-best-performing balanced fund, and Equity Income is the fifth-best-performing growth-and-income fund. Karen Reidy, another assistant manager at Janus funds, is slated to take over Rollins' funds.
Craig will remain chief investment officer at Janus and take on a new post as research director.
He says he'll be visiting more companies than he has in recent years, and will recruit and train analysts.
As Janus assets have ballooned to $166 billion, Craig says, it has become more important to discover good stocks before everyone else does: "Running this much money, we have to anticipate things."
Craig will have plenty of sway over the Janus funds' stock picks, because most Janus managers invest in the same types of stocks. In fact, almost half of Janus fund's stocks are also owned by Balanced and Equity Income, according to Morningstar.
Craig wants Janus funds to invest in more sectors of the market, while retaining their growth focus. He also says Janus will open a value fund next year.
Craig says his departure has nothing to do with a fracas between Janus and its parent company, Kansas City Southern Industries, which plans to spin off Janus but wants to add some other financial-services business to the new company. Janus officials want to be on their own.
At year's end, Craig, 43, will also relinquish his position as one of three co-managers of Janus Venture.