Janus Henderson Absolute Return Fund on Barclays
Thesis
The fund increased its Barclays position during the month. The managers see a disconnect between the share price and the bank's earnings and returns potential, implying that the market is not fully reflecting the quality of the underlying opportunity. The position sits within a banking exposure that was volatile amid speculation about possible policy measures ahead of the UK Autumn Budget.
“we continued to see a disconnect between the share price and the earnings and returns potential of the business”
Key risks
- Potential UK policy measures could pressure bank shares
- Banking-sector sentiment can remain volatile