Sector Viewpoints

Get access to the insights and opinions of Janus' seven global sector teams and learn how they are using bottom-up, fundamental research to uncover investment opportunities.

Sector

Speaker

Role at Janus Capital Group

Rachel Young

Global Credit Analyst

  • U.S. banks have led a global system overhaul and are healthier today than pre-crisis due to strict regulatory reform and proactive management balance sheet discipline.
  • Europe is in the early stages of reform, but opportunities in the UK, Spain and Ireland appear compelling.
  • Despite spread tightening, we believe that financials will offer some of the best risk-adjusted returns in the credit space in 2014 and beyond.

Ken Spruell, CFA

Equity Research Analyst

  • A stronger economy is a tailwind for industrial companies, but economic improvements are already reflected in valuations.
  • Investment opportunities lie at the individual stock level. A number of companies have brought in new management teams who are improving an underperforming company operating in an attractive industry structure.
  • Industrial companies became extremely efficient and productive during the downturn, but we believe there is still room for margin expansion.

Garth Yettick

Equity Research Analyst

  • We expect rapid growth in devices that interact and communicate with each other. Examples range from self-driving cars to devices that optimize water and fertilizer use in agriculture.
  • The cost of key components for the Internet of Things has recently come down considerably, which is allowing these interconnected devices to proliferate.
  • As this trend plays out, it will present growth opportunities in the technology sector, and create competitive advantages and disruption for companies in other sectors.

Brad Smith

Global Credit Analyst

  • The Affordable Care Act (ACA) and other trends are changing the U.S. fee-for-service model, creating potential opportunities for credit investors.
  • Hospitals likely will benefit from reform, while insurers will shoulder greater burdens.
  • We are focusing on companies engaged in eliminating unnecessary system costs, and biotech companies with novel therapies that address unmet needs.

Andy Summers
Matt Hochstetler

Equity Research Analyst and Co-Portfolio Manager

  • Global population growth and emerging market standard of living increases are driving increased demand for grain, creating an emphasis on enhancing agricultural yields.
  • Genetic seed innovations are the key to enhancing yields. Many of the seed trait advancements in corn yield gains are now being applied to soybeans, opening significant pricing potential for seed companies.
  • Potash- and phosphate-based fertilizers appear to offer strong long-term supply/demand fundamentals, but nitrogen demand is susceptible to seed innovation.

Julian McManus

Portfolio Manager and Equity Research Analyst, Japan

  • Initiatives proposed by Prime Minister Shinzo Abe such as labor reform, corporate tax cuts and privatization of select industries could be a long-term tailwind for Japan.
  • We believe a sense of urgency by Japanese politicians makes those reforms more likely.
  • Japanese e-commerce companies, select exporters and Japanese banks could be attractive investment opportunities as the economy improves.

Seth Meyer

Fixed Income Research Analyst

  • Automakers in the U.S. and Europe have made progress in reducing debt, costs and production capacity since the 2007-2009 recession.
  • We believe the European auto industry is showing signs that it has reached bottom and may begin to improve.
  • We continue to favor U.S. auto companies that are focused on balance-sheet-constructive activities.

Brad Slingerlend and Brinton Johns

Portfolio Manager & Equity Analyst

  • Valuations for many companies associated with hyper-growth tech trends are reminiscent of the last tech bubble.
  • We are placing more emphasis on companies with resilient business models that are not dependent on a particular future outcome for success.

Carmel Wellso

Portfolio Manager & Equity Analyst

  • Key measures of European banks’ financial health are generally improving. Non-performing loans have stabilized, and most banks are on pace to meet new capital requirements.
  • Most European banks’ valuations are well below their historical averages, and well below their peers in the U.S. and Asia.
  • We believe the market is underestimating the profit boost from cost cutting at large banks and missing investment opportunities.

John Kerschner and Jason Brooks

Global Head of Securitized Products and Research Analyst

  • We do not own the type of MBS that the Federal Reserve has been buying for QE3.
  • Janus has expanded its fixed income securitized products resources as we perceive new opportunities in the market.

Andy Acker

Portfolio Manager Equity Analyst

  • Improvements in understanding the genetic basis of diseases have led to a wave of novel therapies that offer better outcomes for patients.
  • Many of the largest biotechnology companies are in the early stages of major new product launches.
  • Innovative drug companies and companies that improve efficiency within the health care system present two of the biggest investment opportunities, in our view.

Jean Barnard

Equity Analyst

  • Alternative platforms for viewing television content have driven up the value of hit content.
  • We believe companies will be able to further monetize viewing across new, on-demand platforms as the industry improves viewing measurement, and hones its ability to insert new ads for delayed viewers.
  • One of our major investment themes within the sector is companies that could benefit from the shift from desktop to mobile Internet use.

John Lloyd

Global Head of Credit Research/Fixed Income Research Analyst, Housing

  • The housing industry has been a strong driver of recent U.S. economic growth, and in our opinion the pace shows no sign of slowing.
  • High rental rates have encouraged investors to buy properties to rent. This has put a floor on prices.
  • Single-family home demand is increasing as an improving economy encourages household formation and more people are able to qualify for mortgages.
  • European industrial companies avoided major restructuring in 2008, but slow economic growth is forcing change now.
  • In some countries, unions have lost power and governments are more supportive of corporations taking large cost-cutting measures.
  • Companies taking deep restructuring measures today offer long-term investment potential, especially in industries that have potential for the biggest cyclical upswing.