Janus Funds Joined Internet Bandwagon

Janus Capital Corp. fund managers plowed several billion dollars into Internet stocks during the first half of this year, dramatically boosting their bets on volatile and often-risky Web companies.

The recent Web investments, including stakes in EBay Inc. and Amazon.com Inc., mark a shift at Denver-based Janus, the seventh-biggest U.S. mutual fund manager. Until late last year, Janus had only one major direct Internet stake--America Online Inc.--along with several indirect bets on companies contributing to the growth of the Web.

Shareholder reports, though, disclose that Janus funds made more pure Internet plays in late 1998 and picked up their purchases this year. During the six months ended April 30, Internet stocks rose to 20.4% of assets from 5.3% at the Janus Mercury Fund, for example.

The Janus funds bought Internet stocks worth about $3.2 billion, at current prices, during the first seven months of this year, according to regulatory filings. The actual amount spent by the funds may be different because many Internet stocks surged during the early months of 1999 before falling during recent months.