Growth Managers: Pickings Are Slim; Guardedly Optimistic; Janus' Blaine Rollins tells Morningstar audience fast-sales growth is rare.(MUTUAL FUNDS)(INVESTMENT TRENDS)

Byline: KEN HOOVER

Fund managers who focus on growth stocks say that even though they're beating value funds this year, they're struggling to find good picks.

It's a result of a three-year bear market and a recession that has damaged the earnings and sales growth of many top companies.

"The universe of growth stocks with double-digit top line is basically down 90%-plus," said Blaine Rollins, who runs $16 billion Janus Fund, the group's flagship fund, as well as $1.74 billion Janus Aspen Growth and $390 million Janus Adviser Growth.

Rollins and other top fund managers spoke to 1,200 financial planners and others at the 15th annual Morningstar Investment Conference in Chicago last week.

The advisers heard differing views from the money managers. Some thought deflation was a risk. Some couldn't see it. Some saw a bit of earnings growth that would help stocks later in the year. Others worried that the economy would keep sputtering, locking the stock market in a broad trading range.

Janus funds had a particularly rough time during the bear market. The Denver-based firm's aggressive growth investing style reaped big profits for shareholders in the late '90s. But the funds faltered badly in the bear market.