JNMCX
Janus Henderson MidCap Value-D
Strategic Focus on MidCap Value
The Janus Henderson MidCap Value-D fund (JNMCX) is strategically positioned to capitalize on the growth potential of mid-sized companies. By focusing on equity securities within the market capitalization range of the Russell Midcap Value Index, the fund aims to achieve capital appreciation. This approach allows investors to tap into the growth opportunities presented by companies that are often overlooked by larger funds. The fund’s emphasis on midcap value stocks provides a unique blend of growth and value investing, making it an attractive option for investors seeking to diversify their portfolios with mid-sized companies that have the potential for significant appreciation.
At A Glance
Executive Summary
JNMCX offers midcap value growth with a 0.78% expense ratio and 1.04% yield, focusing on mid-sized companies for capital appreciation.
Focus on mid-sized companies for growth potential. Competitive expense ratio of 0.78%. Diversified sector allocation with strong industrials presence.
Negative alpha and Sharpe ratio indicate underperformance. High downside risk with a max drawdown of -6.8%. Lower correlation with benchmark at 80.75%.
Performance Analysis: A Mixed Bag
JNMCX has shown a mixed performance over various time frames. The fund’s one-year return of 34.48% is impressive, especially when compared to its benchmark, the S&P 500 Total Return Index, which returned 37.62% over the same period. However, the fund’s alpha of -3.19% and Sharpe ratio of -0.24 indicate that it has not effectively managed risk relative to its returns. The fund’s beta of 0.88 suggests lower volatility compared to the market, which might appeal to risk-averse investors. Despite these challenges, the fund’s annualized returns since inception stand at 10.85%, showcasing its potential for long-term growth.
Sector Allocation: A Diverse Portfolio
The fund’s sector allocation is diverse, with significant investments in industrials (19.70%), financials (16.34%), and cyclical sectors (13.93%). This diversification helps mitigate sector-specific risks and provides exposure to various economic segments. The fund’s allocation to real estate (9.35%) and technology (8.39%) further enhances its growth potential, as these sectors are often associated with innovation and expansion. The presence of utilities (5.68%) and energy (5.87%) sectors adds a defensive element to the portfolio, offering stability during market downturns. This balanced sector allocation is designed to capture growth while managing risk effectively.
Top Holdings: A Focus on Stability and Growth
JNMCX’s top holdings reflect a strategic focus on stability and growth. Companies like Entergy Corp (2.86%) and Alliant Energy Corp (2.73%) provide a stable income stream, while Casey’s General Stores Inc (2.63%) and Freeport-McMoRan Inc (2.45%) offer growth potential. The inclusion of Lamar Advertising Co Class A (2.22%) and Agree Realty Corp (2.07%) indicates a preference for companies with strong cash flows and growth prospects. This mix of holdings suggests a balanced approach, aiming to achieve capital appreciation while maintaining a level of income stability. The fund’s top holdings are carefully selected to align with its midcap value strategy.
Risk Metrics: Navigating Market Volatility
The risk metrics for JNMCX highlight some challenges in navigating market volatility. With a standard deviation of 3.89% and a downside risk of 2.38%, the fund exhibits moderate volatility. The max drawdown of -6.8% indicates the potential for significant losses during market downturns, although the recovery length of three months suggests resilience. The fund’s R-squared value of 65.21% shows a moderate correlation with its benchmark, indicating that a portion of its performance is influenced by market movements. Investors should consider these risk metrics when evaluating the fund’s suitability for their portfolios, especially if they are risk-averse.
Competitive Expense Ratio and Yield
JNMCX offers a competitive expense ratio of 0.78%, which is relatively low for a midcap value fund. This cost efficiency can enhance net returns for investors over the long term. Additionally, the fund provides a yield of 1.04%, offering a modest income stream alongside potential capital appreciation. This combination of a low expense ratio and a reasonable yield makes JNMCX an attractive option for investors seeking cost-effective exposure to midcap value stocks. The fund’s ability to maintain a competitive expense structure while delivering returns is a key differentiator in the crowded mutual fund market.
Comparison with Similar Funds
When compared to similar funds, JNMCX holds its ground with a strong one-year return of 34.48%. While Franklin Small/MidCap Growth-A (FRSGX) and CIBC Atlas MidCap Equity-Inst (AWMIX) offer slightly lower returns, they also come with lower expense ratios. However, JNMCX’s focus on value rather than growth differentiates it from these peers. The fund’s beta of 0.88 is lower than that of its competitors, indicating less volatility. This makes JNMCX a suitable choice for investors who prioritize stability over aggressive growth. The fund’s unique positioning in the midcap value space provides a distinct advantage for those seeking diversified exposure.
Conclusion: A Balanced Approach to MidCap Investing
In conclusion, the Janus Henderson MidCap Value-D fund (JNMCX) offers a balanced approach to investing in mid-sized companies. With a focus on value stocks, the fund provides a unique opportunity for investors seeking growth potential with a degree of stability. Its competitive expense ratio and diverse sector allocation make it an attractive option for those looking to diversify their portfolios. However, investors should be mindful of the fund’s risk metrics and performance relative to its benchmark. Overall, JNMCX is well-suited for investors who are comfortable with moderate risk and are looking for a fund that combines growth potential with value investing principles.
Similar Securities
JNMCX: Janus Henderson MidCap Value-D | MidCap Value Growth Fund
JNMCX offers midcap value growth with a 0.78% expense ratio and 1.04% yield, focusing on mid-sized companies for capital appreciation.
MDRFX: BlackRock MidCap Value-InvA | MidCap Value Investment
MDRFX offers mid-cap value exposure with a focus on undervalued equities, a 1% expense ratio, and a 1.69% yield, suitable for growth-oriented investors.
TRMCX: TRPrice MidCap Value Fund | Value-Oriented MidCap Growth
TRMCX offers a value-oriented approach with a 0.85% expense ratio, focusing on undervalued mid-sized companies for long-term growth.
FRBSX: Franklin Mutual US MidCap Value-A | Undervalued MidCap Growth & Income
FRBSX offers undervalued midcap exposure with a 0.90% expense ratio and 1.06% yield, ideal for value-focused investors seeking growth and income.
JSVSX: Janus Henderson Small/MidCap Value-S | Growth Potential in Undervalued MidCaps
JSVSX offers growth through undervalued midcap stocks with a strong 1-year return of 43.42%, outperforming its benchmark.
Futher Reading
https://finance.yahoo.com/quote/JNMCX/”>Yahoo: Janus Henderson MidCap Value-D
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