November 14, 1999. A reader, named Steven from Houston Texas, asked why I have not written more about mutual funds. Well here is one that you will enjoy. It is one of my favorite funds which has an excellent record that will continue for many years to come.

In the past three years Janus has rocketed past their competitors and posted some of the best gains in the business. A three year annual return of 30% puts Janus in the top quartile of large company growth funds and is one point ahead of the S&P 500.

The fund of 69 stocks shows that these holdings are well positioned for a broader market in the future. Janus returned just under 20% in the first six months of this year, outperforming the S&P 500 by seven percentage points.

Janus' biggest holdings are Sun Microsystems (SUNW), Enron (ENE) - a utility stock that is up 42% - and insurance giant American International Group (AIG), whose shares have risen 34%. These have helped the portfolio stay ahead of the market this year.

James Craig, who has been running the fund for over 12 years is a proven stock picker. Craig sees potential in the cable companies, which include Cox Communications (COX), Comcast (CMCSA), and Time Warner (TWX). These firms have spent billions upgrading their infrastructure, and the work is nearly complete, says Craig.

Craig analyzes individual companies that catch his eye. But because he analyzed each fund's weightings in top sectors over the years, Craig's approach held back his stock picking score slightly. Janus' portfolio is 91.29% stocks and 8.7% cash. Even thought Blaine Rollins will succeed James Craig at the helm of the Janus Fund beginning next year, the fund will still be in the #1 group growth fund.

George