Why Janus' Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mutual-fund manager Janus Capital Group (NYSE: JNS  ) were flying high today, gaining as much as 18% in intraday trading after the company announced a big investment from Japan's Dai-ichi Life Insurance.

So what: Dai-ichi is stepping in to buy up to 20% of Janus, a move that could cost the insurer around $300 million. Along with the investment, Dai-ichi is also putting $2 billion of its clients' money into Janus' funds -- that's something but not a huge needle-mover -- and will start to sell Janus-family funds through DIAM Asset Management, a joint venture between Dai-ichi and Mizuho Financial. Dai-ichi will also get a seat on Janus' board.

Now what: There's good reason for Janus shareholders to be excited about this. For one, we've got a major financial company spending a significant amount of money to buy a stake in Janus. That means that either Dai-ichi likes throwing away money or it sees an opportunity in Janus shares. It's a vote of confidence and confirmation bias for Janus bulls all rolled up into one.

At the same time, the deal gives Janus a nice sales outlet in Japan. That could be one of the more notable aspects of the deal since the company has been struggling with investors pulling money out of its mutual funds and could really use some new avenues to attract investor dollars.

Want to keep up to date on Janus Capital Group? Add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1981125, ~/Articles/ArticleHandler.aspx, 10/26/2016 3:49:02 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:02 PM
JNS $13.37 Down -0.56 -4.02%
Janus Capital Grou… CAPS Rating: *