Plus, CIT Group troubles mean big losses for funds, and more.
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Janus Capital Group
Black had some notable successes at Janus. The former Goldman Sachs executive joined Janus as president and chief investment officer in April 2004, after the firm's funds were battered in the early 2000s' bear market. Black was promoted to CEO in January 2006. He successfully oversaw a revamp of the firm's investment process and elevated the role of the research analyst so the analysts became more closely tied to the portfolio management process. During his tenure as president and CIO, the firm expanded both the breath and depth of Janus' research coverage, and as a sign of faith in their abilities, Black turned over multiple funds directly to the equity analyst staff, beginning in early 2005. Overall, the analyst-run funds have performed well versus their peers.
Still, Black's leadership was not without controversy. Under Black, fund manager compensation was reined in, and Black promised publicly that all fund managers would be treated equally in their employment contracts. Even so, a recent trial regarding the compensation of former manager Ed Keely revealed that Black had negotiated a secret, more lucrative side deal with former Janus Twenty
The structure and level of compensation likely contributed to the departures of several of Janus' marquee managers. Among those who left on Black's watch were David Corkins, former manager of Janus Fund
We don't expect any of the changes announced today to immediately impact Janus' mutual funds. We'll be watching, though, to see how the firm manages through this transition.
CIT Group Struggles
The company's stock has fallen sharply this week after reports the federal government denied the company's requests for aid. Shares of the S&P 500 constituent are now down more than 89% for the year to date.