Janus Henderson Absolute Return Fund on Bayer
Thesis
The fund added to Bayer because it believes the market continues to undervalue the quality of the company's underlying business divisions. A second part of the thesis is the potential benefit from a resolution of the glyphosate-related litigation. The position therefore combines a valuation argument around the operating businesses with an event-driven opportunity if the legal overhang is reduced.
“the market has continued to undervalue the underlying quality of its business divisions”
Key risks
- Glyphosate-related litigation remains unresolved
- The market may continue to discount the underlying business divisions