167. Backing the world’s most famous investor

Ben Wallace, co-manager of Janus Henderson Absolute Return fund, talks about his investment in Warren Buffet’s company, Berkshire Hathaway – and how the sum of the parts is worth more than the value of the group. He discusses the areas where the fund is long (looking for share prices to rise) and where it is short (looking for share prices to fall). And if he could wave a magic wand, he tells us he’d wish for a little more volatility, slightly higher bond yields and interest rates, and for the UK not to be the worst performing stock market again next year…
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Janus Henderson Absolute Return is a long/short equity fund with a UK bias, that aims to deliver a positive absolute return over rolling 12-month periods. The managers look to identify stocks that will either exceed or fall short of analysts’ expectations and construct a portfolio of both long (profit when the share price goes up) and short (profit when the share price goes down) positions. There are limits on the overall market exposure, which serves to reduce the volatility of the fund.

What’s covered in this podcast:

  • How the managers have used the flexibility to invest globally
  • What index derivatives are and why the managers are short them
  • The fund’s investment in Berkshire Hathaway – the company owned by legendary investor Warren Buffet
  • The type of environment in which the fund does best
  • The market the manager is optimistic about and the one area he has concerns
  • How the managers are balancing the growth vs value debate
  • What it will take for investors to like UK equities again
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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