Janus Henderson Absolute Return Fund on Bayer AG
Thesis
The fund added to Bayer because it believes the market continues to undervalue the quality of the company's underlying divisions. A second source of potential upside is progress toward resolving glyphosate-related litigation. The pitch is therefore a combination of sum-of-the-parts quality being underappreciated and litigation overhang potentially easing. ([Bayer][18])
“we believe the market has continued to undervalue the underlying quality of its business divisions, and the potential benefits from a resolution of the glyphosate-related litigation.”
Key risks
- Glyphosate-related litigation remains unresolved
- The market may continue to assign a discount to Bayer's business divisions