Most Colorado mutual funds devoted to stocks finished the first quarter in positive territory, emerging from a volatile stretch with decent gains.

The $4 billion Janus Research Fund, relying on the best and brightest ideas of the company's analyst team, was victorious in the diversified stock portfolio pack, delivering a return of 7.1 percent in the three-month period. The fund - formerly the Janus Mercury Fund - started 2007 with significant stakes of General Electric, Owens Illinois and Apple.

Its sibling, the Janus Global Research Fund, with a gain of 6.6 percent, wasn't far behind.

In fact, many of the Denver- based company's offerings, such as the Janus Contrarian Fund, kept their cool, beating rivals as well as the stock market.

The $26 million Westcore Small Cap Opportunity Fund also stood out in the quarter, up 6.5 percent. The portfolio showed that the small stock sector, widely expected to fall out of favor after a long hot streak, still had plenty to offer. General Cable, Epicor Software and Kendle International were among the biggest holdings, according to Morningstar Inc.

The Icon Materials Fund, whose largest stocks include Praxair and Lubrizol, was the best sector fund performer, with an increase of 9.5 percent. The Icon Financial Fund was the worst, down 3.7 percent.

The American Growth Fund, run by Robert Brody since the late 1950s, sat at the bottom of the Colorado list in the quarter, Lipper figures show. That portfolio dropped 4.6 percent over the three months, according to the quarterly data.

By contrast, the average U.S. diversified stock fund climbed 2.1 percent in the quarter through Thursday's close, according to Lipper Inc. Midcaps portfolios posted strong numbers, with funds focused on utility stocks leading the way.

The Marsico family of mutual funds, which have put together stellar long-term track records, couldn't keep up with most portfolios in the state during the first quarter. The Marsico Growth Fund was up 0.4 percent, and the Marsico Focus Fund dipped 0.7 percent.

A late February, one-day drop in the Dow of more than 3 percent wiped out all of the 2007 gains up until that point. Investors started that day with news of a 9 percent decline in Chinese stocks.

Some saw the turmoil as a bad sign. Others saw it as an opportunity.

In any case, markets have recovered somewhat in recent weeks.

The QCM Absolute Return Fund, which uses merger arbitrage and still is too small to appear in the quarterly listings, with less than $10 million in assets under management, was up roughly 1.7 percent in the quarter. Portfolio manager Jerry Paul said his portfolio is "low volatility," a sales pitch that might appeal to jittery investors in this environment.

patonj@RockyMountainNews.com or 303-954-2544