Janus Henderson Horizon Pan European Absolute Return Fund

The Janus Henderson Pan European Absolute Return fund is an European large cap long/short equity strategy that combines macro views with deep dive fundamental analysis to identify opportunities across sectors and styles. The portfolio is co-managed by John Bennett and Robert Schramm-Fuchs who believe in an active and concentrated approach to investing (40 longs and 25 shorts), with dynamic management of net and gross exposures key to achieving absolute returns across market cycles. The fund’s typical gross exposure range is 120-150% vs. net averaging in the 30s (0-50% range). The fund’s net exposure is typically adjusted via a dynamic hedging overlay, which brings the total portfolio in line with the team’s macro view and is shaped according to accumulated factor risk from single stocks. Ideas generation is largely informed by the team’s macro outlook (money supply, capex cycle, inventory cycle, etc), which defines the research agenda. In-depth fundamental analysis is centered around the rate of change of the quality of a company (ie. Cash return on capital and the direction of cash return) and the extent by which is over/underappreciated by the market.