Janus Henderson US Venture I2 USD |
Morningstar's Take
|12/01/2024by Eric Schultz
| Janus Henderson Venture earns Above Average People and Process ratings thanks to its solid management team and sensible approach to growth investing. This small-cap strategy benefits from stable and experienced managers, particularly Jonathan Coleman, who has focused on small- and mid-cap stocks for most of his career. He joined Janus in 1994 and had success across most of his charges before he took the lead here in 2013, at which time he also took over highly rated smid-cap growth sibling Janus Henderson Triton JGMAX. Comanager Scott Stutzman was an analyst here for nearly a decade before stepping up to this current role in 2016. In late 2022, the manager lineup gained additional depth when Aaron Schaechterle returned to Janus and this strategy as a comanager after a brief stint outside the industry. Six dedicated small- and mid-cap analysts round out the team and provide adequate support. The strategy’s moderate approach to growth investing has many attractive features. It focuses on small-cap firms that can grow throughout the business cycle. The managers target reasonably priced but not necessarily cheap stocks and take a long-term perspective. They anchor the portfolio in stocks they think have the least downside risk, typically those with durable earnings and revenue streams. Businesses with more variable outcomes, such as biotechnology, tend to be smaller positions. Performance stands out for its appealing and consistent return profile. During Coleman’s tenure, the strategy's U.S. mutual fund vehicle held up relatively well in nearly all major drawdowns and in 2015, 2018, and 2022—the only calendar years in which the Russell 2000 Growth Index posted losses. During Coleman’s tenure, the strategy captured just 86% of the benchmark’s monthly losses. In contrast, the moderate approach tends to lag in rallies, as it did in 2023. Stock-picking woes in the consequential technology and healthcare sectors also weighed on results versus peers and the benchmark. However, the managers have demonstrated success in these sectors over longer periods. The strategy’s many advantages remain intact, so it should continue to reward long-term investors. |
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| Morningstar Pillars | |
| People | Above Average |
| Parent | Average |
| Process | Above Average |
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
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