Lastly, Janus (JNS, Financial)—whose ongoing challenges have tested even our patience—represents the most contrarian name in our entire portfolio as measured by the large number of Wall Street analysts who have a sell rating on the stock. An undesirable trifecta of weak investment results, the negative impact from performance-based fees and net outflows largely isolated to three of its well-known mutual funds have created a perfect storm for this $162 billion asset manager. In our view, the bad news is more than priced in. By our calculation, performance fees have bottomed. Moreover, the company's balance sheet continues to strengthen and outflows should stabilize once returns improve.
From John Rogers' Ariel Fund and Ariel Appreciate Fund portfolio manager letter third quarter 2013.
From John Rogers' Ariel Fund and Ariel Appreciate Fund portfolio manager letter third quarter 2013.
