Trustnet Magazine 95 May 2023 | Page 44


Janus Henderson European Growth

Manager Marc Schartz says his focus on “ contrarian quality ” companies makes his fund suitable for investors who don ’ t want to make a call on growth or value

Somewhat surprisingly , Europe has turned out to be the place to be this year , outperforming all other developed markets so far . Marc Schartz , manager of Janus Henderson European Growth , said this is no flash in the pan , claiming that the market is full of unloved sectors capable of thriving in the current environment . Schartz invests in “ contrarian quality ” companies , meaning those that have the ability to derive a high return on capital , but are currently being overlooked by the market . This can be because of a period of financial under-delivery , for being on a “ boring trajectory ”, or because they are encountering cyclical headwinds .
He contrasted contrarian quality stocks with “ obvious quality growth ” ones , which steadily re-rated upwards in the 2010s when money was getting cheaper . He said the former group is better positioned to tackle the environment of higher interest rates , which he believes is here to stay . “ I have no edge in telling you exactly what monetary policy will look like over the next two years , but we can all agree that we will not see new lows in interest rates nor increased monetary easing – more likely the reverse ,” the manager said . “ So this non-discriminatory , relentless outperformance of quality growth comes to an end , which is where our contrarian quality comes in .”
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