The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Janus Henderson Group plc (NYSE:JHG) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Janus Henderson Group plc (NYSE:JHG) was in 17 hedge funds’ portfolios at the end of the third quarter of 2018. JHG has experienced an increase in support from the world’s most elite money managers lately. There were 13 hedge funds in our database with JHG holdings at the end of the previous quarter. Our calculations also showed that jhg isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Mario Gabelli of GAMCO Investors
Let’s review the latest hedge fund action regarding Janus Henderson Group plc (NYSE:JHG).
What have hedge funds been doing with Janus Henderson Group plc (NYSE:JHG)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 31% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in JHG over the last 13 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Ariel Investments held the most valuable stake in Janus Henderson Group plc (NYSE:JHG), which was worth $63.9 million at the end of the third quarter. On the second spot was Fisher Asset Management which amassed $41.3 million worth of shares. Moreover, Citadel Investment Group, GAMCO Investors, and AQR Capital Management were also bullish on Janus Henderson Group plc (NYSE:JHG), allocating a large percentage of their portfolios to this stock.
As one would reasonably expect, key money managers were leading the bulls’ herd. LMR Partners, managed by Ben Levine, Andrew Manuel and Stefan Renold, established the biggest position in Janus Henderson Group plc (NYSE:JHG). LMR Partners had $0.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $0.3 million investment in the stock during the quarter. The following funds were also among the new JHG investors: Joel Greenblatt’s Gotham Asset Management and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Janus Henderson Group plc (NYSE:JHG) but similarly valued. We will take a look at Centrais Elétricas Brasileiras S.A. – Eletrobras (NYSE:EBR), Marriott Vacations Worldwide Corporation (NYSE:VAC), AECOM (NYSE:ACM), and The Hanover Insurance Group, Inc. (NYSE:THG). All of these stocks’ market caps are closest to JHG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EBR | 4 | 4967 | 1 |
| VAC | 32 | 578468 | 12 |
| ACM | 18 | 293664 | -1 |
| THG | 18 | 379909 | 4 |
| Average | 18 | 314252 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $314 million. That figure was $183 million in JHG’s case. Marriott Vacations Worldwide Corporation (NYSE:VAC) is the most popular stock in this table. On the other hand Centrais Elétricas Brasileiras S.A. – Eletrobras (NYSE:EBR) is the least popular one with only 4 bullish hedge fund positions. Janus Henderson Group plc (NYSE:JHG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VAC might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.