In a series of recent
misinformation pieces, Morningstar's financial journalists have
managed to so confuse the KSU/Stilwell/Janus issue that
their readers are apt to become as confused as they
Due to a complete lack of understanding, they cannot
1. Post-split, the same people own
Janus as pre-split. Even their percentage ownership is
2. Janus Capital Corp., manager of
the Janus funds, is 80% owned by shareholders of
Stilwell. Shareholders in Stilwell own these shares, and
control those votes.
3. Janus fund shareholders do
not own Janus Capital Corp. Changes in the ownership
of Janus Capital have no impact on Janus funds so
long as any such change does not cause an adverse
change in the ability of Janus funds to retain top fund
Any Morningstar suggestions that
Janus fund shareholders might wage a proxy fight for
control of Janus Capital reflect a complete lack of
understanding of points 1-3.
After looking at the few
most recent vitrolic Morningstar "reports" on
Stilwell, I have a couple of questions of my own:
Why does Morningstar employ so many ignorant
2. Why are the ignornant
Morningstar financial journalists so angry about matters that
they clearly do not understand? (Being fat, dumb and
happy is always better than starving, dumb and
Professor of Finance
Stockton Research fellow
PS: I'm a big fan of KSU management, big shareholder
too. I'm also very happy.
Mr. Hirschey./Professer/ Sir,
It is you
that I have been wanting to talk to. Maybe you, with
your vastly informed and accomplished brain, can
answer some of my questions about the Janus vs. Stilwell
"problem", since I know nothing about "it" other than
reading the articles by Morningstar and CBS marketwatch,
and some various posts.
How will I, as a
Janus Mutual Fund shareholder, be directly affected
(Finacially) from the Stilwell spinoff? Will Janus management
quit, will Stilwell change the way Janus does things.
It seems to me that no one can possibly know until
the spinoff is done and the managers leave or stay.
Why would Janus management threaten to quit over a
silly name change.(Stilwell is a funny name isn't it)
Does it not seem smarter to you, to keep things as
they are i.e. if it ain't broke don't fix it. I assume
that if you had your money in Janus Funds rather than
KSU stock you would questioning KSU management also,
but hey we all know for sure that Stilwell will still
bring in big profits for KSU shareholders no matter who
is running the Janus funds right! One fund manger is
the same as another, right? Berger sure as hell kept
up those great profits?!
Do we know for sure
that the fund managers at Janus are "bought"? In the
end, we can ALL only hope and pray that the current
fund mangers at Janus, will not leave, and that
Stilwell will let them run things as they have. Janus
should just be left alone to do their money magic as
they have done for all of us for so long. I hope
Stilwell is all only a name change.
Long live Janus
and my retirement,
Ryan S. Wynder
24 year old
Sous Chef at a restaurant in Sunny Florida. My step
father has his D.V.M. from KSU, that means I am only
> How will I, as a Janus Mutual Fund
shareholder, be directly affected (Fina[n]cially) from the
Stilwell spinoff? < Not at all that I know of. Why
should you be ? You have bought a mutual fund product.
Your financial interests are affected by the Stock
Market performance of the individual stocks in that
fund. The spinoff to benefit KSU shareholders has no
effect on that. In the future your financial interests
will _also_ be affected by decisions made by your
Janus fund manager to add/delete individual stocks from
your fund. > Will Janus [fund managers] quit? <
Depends on Janus _TOP_ management I would think. As
always they will weed out marginal performers and reward
superior performers and encourage them to stay. Why would
this change? Janus is a company with its own
management, own Board of Directors, its own compensation
policies; this has not changed. > Will Stilwell change
the way Janus does things? < Stilwell, formerly a
subsidiary of KSU (and prior to a couple of years ago called
"FAM"), has owned Janus for close to 20 years. The same
Stilwell top management that has run the shop for most if
not all of that time is still running the shop today.
Their policy has always been that the companies they
own are autonomous as long as they perform. Why would
that successful strategy change? > Why would Janus
management threaten to quit over a silly name change? < A
lot of people make money in a transaction like a
spinoff. Banks, Lawyers, consultants, top management.
Bonuses, fees; it's like a trip to Disney World for the
Rich & Avaricious. Some Janus people may have felt
they weren't getting enough of the action; they were
paid more. The issue has died down except for a couple
of clueless reporters sniffing around the edges.
> Does it not seem smarter to you, to keep things
as they are i.e. if it ain't broke don't fix it?
< Always a good idea. Trouble was, it WAS broke.
Stilwell (formerly FAM) has always been tied to a
railroad. In the old days this was regarded as "protection"
for the smaller Stilwell. As Stilwell (FAM) has
prospered and the railroad has not, it was time to jetison
the railroad (which its advocates think has wonderful
potential on its own and will blossom). That spinoff of the
railroad is EXACTLY what has happened, accomplished in a
very clever way that achieves enormous tax advatages
to the benefit of KSU shareholders. Hooray for us.
> Janus should just be left alone to do their money
magic as they have done for all of us for so long. <
Your mother loves you. She
wants good things for you. She showers you with love
I hope you love your mother. I
hope you show your love to your mother in many little
ways. Stop reading this and call her right now "just to
"say I love you.".
I'm not your
We've never met.
And who gives a damn when (or
if) I shower?
I'm just trying to gather
valuable insight about the valuation of KSU from
anonmyous, biased sources, like you. That's tough. I will
have to sort out that part of what you post which is
biased, baloney, or just plain biased baloney.
example, you might THINK I am a finance professor at the
University of Kansas. Do you know that?
There is a
Mark Hirschey, Professor of Finance and Stockton
Research Fellow at the University of Kansas (check it out
on the Web
However, how do you know that I am that
Moreover, even if I am, who cares?
Does that guy
ever get it right? And if he does, why would he give
What part of what mhirschey posts is
biased, baloney or just plain biased
IMHO, all of what I post is biased. (I LOVE this
stock.) A cynic might say that I want you to buy KSU
right now and make its price go up a lot! That cynic
would be right.
Whoa, before you e-mail the SEC
enforcement staff, round up the police, and get the dog
catcher involved, be sure that I'm not pulling your leg a
bit in the paragraph just above. Again, how would you
Truthfully (again, who knows?), I believe:
I say here can move KSU. I am no Tom or David
2. KSU is run by smart, shareholder motivated
management. They will do nothing to harm the Janus Capital,
Inc. franchise. They have nurtured this baby, and will
ensure that it grows, and grows, and grows. They will
maximize shareholder value.
Stilwell/railroad split up is a great first step in this
restructuring process. (Why do you think they called it
Stilwell Financial, and not Janus Capital?)
Janus funds are run by extremely capable management
that has done exceedingly well in a robust investment
environment for growth stocks. They will continue to do well
in a market environment that I expect will be a bit
rougher for growth stock investors.
I will be able to decipher bias from baloney.
Sometimes, I won't.
From Asolo, Italy, I
Your insights are right on target. Both of the
Morningstar "writers" can be emailed (addresses listed at the
end of their "articles"). Given your grasp of the
matter...it might be worthwhile to respond to them directly.
Uninformed journalism should not go unchallenged. Thanks.
I see a lot of good ideas
posted on Yahoo.
The idea to mention my comments
to Morningstar is another good idea.
I will pass my comments onto the Morningstar
writers in question.