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Now the FBI wants information from Janus, a huge mutual fund located in Colorado.This is the first non-Northeastern firm to be hit by the FBI probe.
JNS was just halted for trading because, apparently the feds just asked the fund for information and people are just finding out about it.
It was suspected that Janus might be involved as early as this weekend, because Janus was included in the Wall Street Journal’s report, but now it’s confirmed.
Bloomberg’s Margaret Brennan just tweeted that the company had received a request for general information concerning the insider trading investigation.
And Janus said in a statement, “Janus maintains rigorous compliance procedures and Janus has confidence in the integrity of its processes and its people.”
Janus Capital’s latest 13f-HR shows the company’s biggest equity holdings are Apple, BofA, Cisco, Celgene Corp, Crown Castle, Exxon, Morgan Stanley, Oracle and Yahoo.
Apparently two mutual funds, Wellington, and Janus, received an email from a Portland, Oregon firm, and that’s why they’re involved in the scandal in the first place.
The closely held Boston asset manager was among three mutual fund firms previously identified in media reports as having received an email from a Portland, Oregon firm that specialises in providing specialised research to investors.
Wellington had previously declined to comment on the email, as did the two other fund firms named as receiving it, Janus Capital Group Inc (JNS.N) and MFS Investment Management of Boston.
Someone from the Portland firm reportedly sent an email to the two mutual funds that described how the feds had asked for their cooperation in a wide insider trading investigation.
(Reports that MFS Global had also received a subpoena, turned out to be false. “MFS did NOT receive a request for documents,” the company told us).
And apparently it has not been a good year for Janus.
“As a reminder, Janus is the mutual fund that had the worst cash levels in pretty much the entire industry,” Zerohedge said.
More information as we get it.