Janus Henderson Absolute Return Fund on Anglo American
Thesis
The fund established Anglo American as a new core long holding. Although the shares benefited during August from a weaker US dollar and stronger commodity prices, the managers say the investment case is centered on value creation from the proposed combination with Canadian miner Teck. They believe the strategic fit and potential synergies between the two businesses are compelling despite the mixed historical record of mining mergers.
“our investment case remains centred on the value creation potential of its proposed combination with Canadian miner Teck”
Key risks
- Mining mergers have historically produced mixed outcomes
- Commodity prices and currency moves can affect the shares