The $5 billion Janus Orion Fund (JORNX) is down 29 percent over the past 12 months, ranking it in the bottom half of mid-cap growth funds. Its three-year annualized return of 4 percent places it in the top 3 percent of its category.
"While John Eisinger has only been lead manager since the beginning of this year, he's made some good calls on the buying and selling sides," said Michael Herbst, analyst with Morningstar Inc. in Chicago. "It is early to say, but we're optimistic about his prospects because he has avoided big potholes, and we recommend the fund."
Eisinger, who previously was an analyst at Janus and at Fidelity, reduced his position in Bavarian Motor Works AG because of concern about its leasing operation, and he unloaded the troubled investment bank UBS. He prefers underearning firms with potential, such as CapitalSource Inc. and Cypress Semiconductor Corp., and invests in all market capitalizations.
The compact portfolio holds only a few dozen stock names, which means the performance of a few holdings can have a dramatic effect on results. It includes a number of foreign stocks.
Ron Sachs, who managed this fund since its 2000 inception, left to take over Janus Twenty Fund in January. The Janus fund family had its problems in the technology bubble and market-timing scandal but has beefed up its stock-research staff and made compensation of its managers more directly correlated to fund performance than was the case in past years.
Industrial materials and technology hardware each represent about 20 percent of the Janus Orion portfolio, with other concentrations in financial services and consumer services. Top stock holdings were recently Siemens AG, Celgene Corp., CVS Caremark Corp., Crown Castle International Corp., Cypress Semiconductor, CapitalSource, America Movil, Research in Motion Ltd., CapitaLand Ltd. and Companhia Vale do Rio Doce.
This "no-load" (no sales charge) fund requires a $2,500 minimum initial investment and has an annual expense ratio of 0.92 percent.
Q. I took a buyout and am now working out of my home. What can I deduct from my taxes for my home office? -- K.D., via the Internet
A. Working from home is on the rise these days, but you must determine if you actually quality for the home-office deduction.
"It can't be a playroom for your kids during the day and your home office at night," said Lyle Benson, certified public accountant and president of L.K. Benson & Co. in Baltimore.
You can claim the deduction only if you use that portion of your home regularly and exclusively as your principal place of business. It must be a place to meet or deal with your clients, customers or patients in the normal course of business.
"Once you qualify, you can deduct direct and indirect expenses," Benson said. "Direct expenses apply solely to the home office, such as computer equipment and a dedicated phone line, while indirect expenses involve expenses of your total home, such as rent, real estate taxes and utilities."
The deduction, available to both renters and homeowners, has no square-footage requirement. But the amount you can deduct depends on the percentage of your home that you use for business.
(Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, AZ 85004-1248, or by e-mail at andrewinv@aol.com.)
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