Janus Henderson Absolute Return Fund on Persimmon plc
Thesis
Persimmon is an existing core position that the fund continued to build because it believes the company is well positioned within UK housebuilding. The managers favour its exposure to more affordable northern markets, integrated operating model and management team, and see upside if rate expectations improve or housing-demand measures are introduced. The position is partially hedged with shorts in selected peers because the fund believes Persimmon should be better placed as conditions normalise and is less burdened by legacy cladding liabilities. ([London Stock Exchange][16])
“we think any improvement in expectations for interest rates or measures to stimulate housing demand could enhance what we see as an attractive risk-reward profile.”
Key risks
- Near-term UK housing conditions remain challenging
- Higher interest rates or weak housing demand could delay a recovery