Onetime Fund Star Hayes to Leave Janus

Helen Young Hayes, a veteran Janus Capital Group Inc. money manager who was promoted 14 months ago to oversee all of the firm’s mutual funds, said Thursday that she would resign.

One of the stars of the fund world in the 1990s, the 40-year-old Hayes has since stumbled badly -- as have other Janus managers who rode “growth” stocks to extraordinary heights during the bull market.

The $11-billion Janus Worldwide fund, which Hayes managed or co-managed since its inception, has lost an average of 22% a year during the last three years -- worse than 86% of its peers, according to fund tracker Morningstar Inc.

Hayes, a 16-year Janus veteran, was part of the new management team that took over the Denver-based fund company last year after its merger with parent Stilwell Financial Inc.

Her task upon being named managing director of investments was to improve performance as client withdrawals escalated. But Janus’ funds slumped further in 2002 with the stock market overall.

In the last two years, Janus’ assets have fallen by about half, to $133 billion as of March 31.

Janus will replace Hayes with a chief investment officer, said spokeswoman Shelley Peterson.

Janus Worldwide co-manager Laurence Chang will take lead responsibility for that fund, Janus said. Brent Lynn, who co-manages the Janus Overseas fund with Hayes, will assume responsibility for that portfolio.

In Hayes’ first five years as a fund manager, 1991-96, the Worldwide fund rose an average of 20.2% a year, the best in its category.

She was named Morningstar’s International Fund Manager of the Year in 1997. Three years later, Hayes was among the SmartMoney Power 30, a list of the most influential people in the investing field.

Her departure “raises the anxiety level,” said Bill Katz, an analyst at Putnam Lovell NBF Securities Inc. “It could translate into higher fund outflows in the nearterm” if more investors give up hope of a turnaround.

Hayes is a Yale University graduate with a degree in economics. The California native trained for triathlons when she wasn’t working or traveling three months a year scouring for stock ideas.

She will step down as investment director June 16 and re- tire from the fund management business at year-end, Janus said.

Hayes started her career at New York-based Fred Alger Management Inc. in 1984.

Janus shares rose 34 cents to $12.95 on the New York Stock Exchange on Thursday. They have fallen 45% in the last year.