Janus Henderson Global Sustainable Equity Fund on Verisk Analytics, Inc.
Thesis
After strong performance in some AI beneficiaries, the fund trimmed risk and redeployed into businesses it believes were unfairly penalised. Verisk was specifically added as a wider-moat company that the managers think can benefit from greater data utilisation and increasing regulatory complexity rather than be disintermediated by those trends. The pitch is a contrarian long on a durable data franchise that may be a beneficiary rather than a casualty of AI-driven change. ([Verisk Analytics Investor Relations][12])
“We added to positions in wider-moat businesses such as Verisk Analytics, which we believe may benefit from greater data utilisation and regulatory complexity.”
Key risks
- AI or new data tools could disintermediate parts of Verisk's existing value proposition
- The expected benefit from greater regulatory complexity may not translate into stronger growth