Janus Henderson Horizon Fund - Global Smaller Companies Fund on Sterling Infrastructure, Inc.
Thesis
Sterling Infrastructure is viewed as a beneficiary of continued investment in AI-related infrastructure. Its results demonstrated strong growth and attractive returns, although investors focused on modest shortfalls in margins and backlog. After discussions with management, the fund concluded that these shortfalls were manageable rather than evidence of a change in the long-term investment case.
“we remain comfortable that these represented manageable shortfalls rather than any change to the long-term investment case.”
Key risks
- Heightened investor caution around the AI infrastructure trade
- Shortfalls in margins and backlog