336. Stock picking in a higher-rate world

This interview explores the shifting market environment, with a focus on how rising interest rates have created opportunities for stock pickers. Luke Newman, co-manager of the Janus Henderson Absolute Return (www.fundcalibr...) fund, shares his insights on why today’s higher-rate environment benefits active managers and how it contrasts with the past decade of ultra-low rates. We touch on the behavioural changes among corporate leaders, the importance of stock fundamentals, and the role of tactical and core portfolios in managing risk and returns.
What’s covered in this episode:
• What is this fund trying to achieve?
• The two main issues in markets today
• Are you worried we’re returning into a lower interest rate environment?
• How does the long/short book change with interest rates?
• Why is now an ideal stock picking scenario?
• The diversion between long and short opportunities today
• Insights into the US consumer
• Being long obesity drugs and short hamburgers
More about the fund: Janus Henderson Absolute Return (www.fundcalibr...) is a long/short equity fund with a UK bias, that aims to deliver a positive absolute return over rolling 12-month periods. The managers look to identify stocks that will either exceed or fall short of analysts' expectations and construct a portfolio of both long (profit when the share price goes up) and short (profit when the share price goes down) positions. There are limits on the overall market exposure, which serves to reduce the volatility of the fund.
Learn more on fundcalibre.com (www.fundcalibr...)
Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.