Mutual Fund Giants Ensnared in Insider Trading Probe

By John Sullivan

November 29, 2010 at 12:41 PM

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Janus Capital Group Inc. said in a Securities Exchange Commission filing that it received a request for general information related to FBI raids of three Connecticut-based hedge funds. The Denver-based mutual fund giant says it intends to fully cooperate with the inquiry.

"Janus maintains rigorous compliance procedures and Janus has confidence in the integrity of its processes and its people," the company said Nov. 23 in an e-mailed statement.

The Associated Press notes Janus is the first publicly traded company to acknowledge getting a request in the inquiry, which grabbed headlines after the FBI raid.

The Janus filing comes as media reports surface of similar requests made by the SEC to Wellington Funds, based in Boston. Offshoots of legendary hedge fund SAC Capital, led by equally legendary manager Steven Cohen, were raided by federal authorities last week as part of an insider trading investigation. SAC Capital has also reportedly received subpoenas.

Janus manages of $161 billion in assets as of Sept. 30, according to the company's website.

(CORRECTION: An earlier version of this story mistakenly said MFS Management also received a general information request from the government. John Reilly, an MFS Management spokesman, said that the company had not received any request from the government.)

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