Janus Henderson Absolute Return Fund on Persimmon
Thesis
The fund continued to build its core position in Persimmon because it believes the housebuilder is well positioned within the UK sector. The managers highlight its greater exposure to more affordable northern markets, highly integrated operating model and strong management team. They also believe improving interest-rate expectations or measures that stimulate housing demand could enhance the risk-reward, while Persimmon is viewed as better placed than selected peers as conditions normalize and is less burdened by legacy cladding liabilities.
“Persimmon may be better positioned to generate returns as market conditions normalise”
Key risks
- Near-term UK housing conditions remain challenging
- The thesis is sensitive to interest-rate expectations and housing demand