Janus Capital Funds Plc

Fund Company

Janus Capital Funds Plc - http://www.janusinternational.com
Janus' strength in growth investing dates back more than 40 years. They seek to achieve results for their clients through a disciplined approach that emphasises intensive fundamental research and a willingness to concentrate the investments where it is believed that they would have a research edge. Their coverage is global in scale, as Janus believe sectors are more important than borders. Their portfolio managers are supported by a research platform that includes seven sector teams with just under 40 equity analysts and a team of research associates.

Key Strengths

  • Philosophy deeply rooted in research
  • More than 40 years of intensive fundamental analysis
  • Broad and deep investment team
  • Willingness to concentrate investments where they have a research edge

Idea Generation

Janus seeks to identify strong businesses with sustainable competitive advantages and improving returns on capital. Their focus in evaluating a company is to gain an information edge. Janus works to truly understand a company’s current valuation as well as the key drivers of its future growth potential. Janus marries their unconstrained research approach with a disciplined approach to portfolio construction. Their portfolio managers are supported by a research platform that includes seven global sector teams with over 40 equity and fixed income analysts.  Every member of the team is committed to delivering superior long-term results for their clients by following a disciplined process that emphasises intensive fundamental research.

In-Depth Research

It is the depth of their research, their willingness to focus their investments where they believe would have a research edge, and their commitment to delivering superior long-term results for their clients that sets them apart.

Janus research analysts review both qualitative and quantitative research characteristics to narrow the total universe to approximately 1,400 stocks. From there, the process can be viewed in three steps.

  • Fundamental analysis
The research team starts with in-depth fundamental analysis to determine a company's financial strength and growth prospects.

  • Financial modeling
Janus believes their financial modeling is among the most rigorous in the industry. Their models build a company's revenue based on a product-by-product basis. Models are used to forecast future free cash flow generation.

  • Valuation
Free cash flow estimates drive their valuation process. Janus uses sum of the parts, EBITA, P/E growth, and other valuation tools; however, their primary tool is discounted cash flow analysis.

Result: Each stock is assigned one of four ratings: strong buy, buy, neutral and sell based on the estimated upside of target price.

Portfolio managers consider selling:
  • When fundamentals change
  • When share price reflects target
  • To upgrade portfolio, better idea
  • To adjust positions based on absolute and relative risk monitoring targets