Janus Capital Management is searching outside its walls for a new investment chief.
In an move uncharacteristic of most fund companies, Janus appears to be looking outside of the firm after its previous investment chief Helen Young Hayes resigned without significant advanced warning in April (see MFMN 4/28/03), Reuters reports.
As with most funds of its caliber, the traditional route is to recruit, train and develop talent from the inside.
According to Louis Harvey, president of research firm Dalbar, the bear market has "shown expertise in investment management is lacking, to put it mildly. Some factors that were never issues about expertise before now come into play."
Matthew Snowling, an analyst with Friedman, Billings, Ramsey, told Reuters that "because of all of the turmoil at Janus, they will be under the microscope on this one. I think they are taking their time trying to find the right person."
Good investement selection five years ago was being able to spot cash flow, capital and potential for growth, Harvey said, and now many more factors must be considered, such as the structure of the board and the potential conflicts of interest that plagued the now notorious cases of Tyco, Worldcom, Enron and countless others.
The new chief investment officer at Janus will face a difficult time, analysts told Reuters, as Janus $141 billion in managed assets are at around half the level they were in 2000.