89. Ditching travel firms and buying ‘boring’ utilities

Ben Wallace, co-manager of Janus Henderson UK Absolute Return fund, tells us how ditching aerospace, travel and leisure companies just prior to the global pandemic protected the fund when stock markets fell. He tells us where he found the most exciting opportunities, but wished he had acted faster, and explains the attractions of housebuilding companies. He also tells us how the European ‘Green Deal’ and US presidential election could result in more investment ideas.
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Janus Henderson UK Absolute Return is a stock-picking fund 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 the when share price goes down) positions.

Read more about Janus Henderson UK Absolute Return

What’s covered in this podcast:

• How changes made to the portfolio in February and March resulted in the fund falling just 4% while the UK stock market fell 34% [0:48]
• How the managers repositioned the fund in March to benefit from the market recovery [4:11]
• Which companies would not be impacted by the coronavirus [4:38]
• Which companies would be impacted by the coronavirus [5:10]
• Which companies would be the eventual winners post-lockdown [5:54]
• Why the managers like housebuilders [7:41]
• Where they are finding opportunities overseas [9:15]
• How European ‘Green Deal’ is an opportunity [9:53]
• Potential opportunities after the US presidential election [10:18]

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