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]

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. Remember, all investments can fall in value as well as rise, so you could make a loss. 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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