Tom Bailey, the founder of Janus Capital Management, is out as president and chief executive officer of the once-popular, now-maligned fund shop.
Mutual fund insiders are convinced Bailey was pushed out by executives at Stilwell Financial, which owns Janus and has been disappointed, like many shareholders, with its recent string of losses.
Bailey did not dispel the notion that he was pushed out.
“This is a bittersweet moment for me because Janus has been – and continues to be – an important part of my life,” he said. “I’ve spent half my life – and nearly all my professional years – at Janus. But it’s time to shift my focus away from my day-to-day operational role as CEO.”
Bailey’s departure did not come as too much of a surprise, however, since he sold his stake in the company last year for $1.2 billion. Then, in January, Bailey handed over responsibility for heading the investment teams to two of his fund managers: international portfolio manager Helen Young Hayes and U.S. growth manager Jim Goff.
But Janus has not yet pulled its funds out of the doldrums.
The firm’s flagship portfolio, Janus fund, lost 14.9 percent in 2000, 26.1 percent in 2001 and 7.5 percent in the first five months of this year.
“Our sense is the style isn’t really going to change with him stepping down,” said Martin Vostry, a research analyst for Lipper, a fund rating firm. “Janus is going to stay a growth shop. We did not get the sense that this is the start of a mass exodus.”