Janus Henderson Global Sustainable Equity Fund on Seagate Technology Holdings plc
Thesis
Seagate declined on profit-taking and broader concern about elevated technology valuations, but the fund views the weakness as short term. The investment case centres on HAMR hard-drive technology, which can provide more storage capacity per drive and therefore improve cost and energy efficiency. The managers see this as particularly valuable as AI drives very large increases in data-storage requirements. ([SEC][11])
“We believe the share price dip to be short term and it does not affect our investment thesis for holding the stock.”
Key risks
- Sector-wide valuation compression
- Product-pricing increases could prove difficult to implement without affecting demand