**Small-Mid Cap Value Fund Performance Update**
As of June 30, 2024, the Small-Mid Cap Value Fund reported cumulative annualized returns of 9.70% since its inception on December 15, 2011. For the second quarter of 2024, the fund’s Class I Shares returned -0.92%, with a year-to-date return of 10.22%.
**Top Performers and Detractors**
In the consumer discretionary sector, Retailer Boot Barn (BOOT) was a notable performer, driven by strong earnings growth. Medical device manufacturer Globus Medical (GMED) was another top contributor, rebounding in the second quarter following strong earnings and improved investor sentiment regarding its acquisition of NuVasive. Kirby Corporation (KEX), a petroleum products transporter, also delivered better-than-expected earnings, supported by its strong competitive position and pricing power.
On the other hand, several industrials holdings with exposure to residential construction were pressured by the outlook for higher-for-longer interest rates. These included Fortune Brands (FBIN), a supplier of doors and plumbing fixtures, and Lincoln Electric Holdings (LECO), a maker of welding equipment. Vontier (VNT), a multi-industry company, declined in the second quarter after strong first-quarter performance but remained a positive performer year to date.
**Portfolio Positioning and Outlook**
The portfolio ended the quarter overweight in the information technology, financials, materials, healthcare, and energy sectors, and underweight in the consumer discretionary, communication services, real estate, consumer staples, utilities, and industrials sectors. We remain cautious about the prospects of higher-for-longer interest rates and their potential impact on economic growth and consumer spending. However, we also see opportunities for attractive valuations and are committed to our core process of seeking out well-managed companies with proven earnings growth, strong free cash flow, and low debt levels.
**Definitions and Disclosures**
Volatility measures risk using the dispersion of returns for a given investment. Return on Equity (ROE) is the measure of a company’s annual return divided by the value of its total shareholders’ equity, expressed as a percentage. Price-to-Earnings (P/E) Ratio measures share price compared to earnings per share for a stock or stocks in a portfolio. Free cash flow (FCF) yield is a financial ratio that measures how much cash flow a company has in case of its liquidation or other obligations.
Please consider the charges, risks, expenses, and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus Henderson at 800.668.0434 or download the file from Products – US Advisor. Read it carefully before you invest or send money. Performance for Class N Shares that includes periods prior to 8/4/17 reflects the performance of another share class of the Fund, adjusted, where applicable and permitted, for differing fees and expenses.
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