JSIVX
Janus Henderson SmallCap Value-L
Introduction to Janus Henderson SmallCap Value-L
The Janus Henderson SmallCap Value-L (JSIVX) fund is designed to provide capital appreciation by investing primarily in small-cap companies that are perceived to be undervalued. This fund is particularly appealing to investors who are looking for opportunities in the small-cap value space, where stocks are often priced below their intrinsic value based on assets, earnings, or cash flow. Managed by Janus Henderson, a well-respected name in the investment community, JSIVX offers a strategic approach to capturing growth potential in undervalued small-cap stocks. With an expense ratio of 0.75%, the fund is competitively priced within its category, making it an attractive option for cost-conscious investors.
At A Glance
Executive Summary
JSIVX offers small-cap value exposure with a focus on undervalued stocks, a 0.75% expense ratio, and a 33.33% 1-year return.
Focus on undervalued small-cap stocks; Strong 1-year return of 33.33%; Managed by Janus Henderson, a reputable firm.
Higher risk with a beta of 1.18; Negative alpha of -4.33%; Lower Sharpe ratio of -0.22 indicates less risk-adjusted return.
Performance Analysis: A Year of Strong Returns
JSIVX has demonstrated impressive performance over the past year, with a 1-year return of 33.33%. This performance is noteworthy, especially when compared to its benchmark, the S&P 500 Total Return Index, which posted a 1-year return of 37.62%. While the fund slightly underperformed the benchmark, its focus on undervalued small-cap stocks has allowed it to capture significant upside potential. The fund’s annualized returns over five years stand at 6.95%, and since inception, it has achieved a return of 10.55%. These figures highlight the fund’s ability to deliver consistent returns over the long term, making it a viable option for investors seeking growth in the small-cap value segment.
Portfolio Composition: A Focus on Financials and Industrials
The portfolio of JSIVX is heavily weighted towards the financial sector, which constitutes 29.85% of its holdings. This is followed by significant allocations in industrials (12.78%) and cyclical sectors (13.24%). Such a composition reflects the fund’s strategy of investing in sectors that are traditionally considered undervalued, providing a cushion against market volatility. The top holdings include Ameris Bancorp, Axis Capital Holdings Ltd, and Chord Energy Corp, each representing a small but strategic portion of the portfolio. This diversified approach within the small-cap value space allows the fund to mitigate risks while capitalizing on growth opportunities in various sectors.
Risk Metrics: Understanding the Volatility
Investors should be aware of the risk metrics associated with JSIVX. The fund has a beta of 1.18, indicating higher volatility compared to the market. Its alpha is -4.33%, suggesting that the fund has underperformed its benchmark on a risk-adjusted basis. The Sharpe ratio of -0.22 further highlights the challenges in achieving risk-adjusted returns. However, the fund’s standard deviation of 5.65% and a max drawdown of -9.8% provide a clearer picture of its volatility profile. These metrics suggest that while the fund offers potential for high returns, it also comes with a higher level of risk, which investors should consider when evaluating their risk tolerance.
Comparative Analysis: How JSIVX Stacks Up Against Peers
When compared to similar funds, JSIVX holds its ground with a strong 1-year return of 33.33%. However, it faces stiff competition from funds like Allspring Discovery SmallCap Growth-A (EGWAX), which posted a 1-year return of 39.28%. Despite this, JSIVX’s focus on value rather than growth differentiates it from its peers, which are more growth-oriented. The fund’s expense ratio of 0.75% is competitive, though slightly higher than some peers like Loomis Sayles SmallCap Growth-Inst (LSSIX) with an expense ratio of 0.0094. Investors looking for a value-focused approach in the small-cap space may find JSIVX’s strategy more aligned with their investment goals.
Sector Allocation: Strategic Positioning for Growth
JSIVX’s sector allocation is strategically positioned to capitalize on growth in undervalued sectors. With a significant portion of its assets in financials, the fund is poised to benefit from economic recovery and interest rate changes. The industrials and cyclical sectors also play a crucial role in the fund’s strategy, offering potential for growth as these sectors rebound. The fund’s minimal exposure to technology and utilities reflects its value-oriented approach, focusing on sectors with perceived undervaluation. This strategic allocation allows JSIVX to navigate market fluctuations while seeking opportunities in sectors that are often overlooked by growth-focused funds.
Market Cap Allocation: Emphasizing Small-Cap Opportunities
The market cap allocation of JSIVX is heavily skewed towards small-cap companies, which make up 65.83% of the portfolio. This focus on small-cap stocks aligns with the fund’s objective of capitalizing on undervalued opportunities in the market. The fund also maintains a modest allocation to medium-cap stocks at 9.24%, providing a balance between growth potential and stability. The minimal exposure to large-cap stocks underscores the fund’s commitment to the small-cap value strategy. This allocation strategy is designed to maximize returns by investing in companies that have significant growth potential but are often overlooked by larger funds.
Conclusion: Is JSIVX the Right Fit for Your Portfolio?
JSIVX stands out as a compelling option for investors seeking exposure to undervalued small-cap stocks. Its strong 1-year return of 33.33% and strategic sector allocation make it an attractive choice for those looking to capitalize on growth in undervalued sectors. However, the fund’s higher volatility and negative alpha suggest that it may not be suitable for risk-averse investors. With a competitive expense ratio of 0.75% and a reputable management team at Janus Henderson, JSIVX offers a unique value proposition for investors willing to embrace the risks associated with small-cap investing. Ultimately, the fund is best suited for those with a higher risk tolerance and a long-term investment horizon.
Similar Securities
LEGFX: BrandywineGLOBAL SmallCap Value-I | Small-Cap Equity Investment
LEGFX offers small-cap value exposure with a 1.22% expense ratio, focusing on undervalued stocks. It has a 25.03% 1-year return, ideal for risk-tolerant investors.
JSIVX: Janus Henderson SmallCap Value-L | Undervalued Small-Cap Stock Investment
JSIVX offers small-cap value exposure with a focus on undervalued stocks, a 0.75% expense ratio, and a 33.33% 1-year return.
FRMCX: Franklin MicroCap Value-A | High-Return Micro-Cap Investment
FRMCX targets undervalued micro-cap stocks for growth and income, with a 1.16% expense ratio and 31.85% 1-year return, ideal for risk-tolerant investors.
FRVLX: Franklin SmallCap Value-A | Small-Cap Value Investment
FRVLX offers small-cap value exposure with a 0.99% expense ratio and 36.24% 1-year return, focusing on undervalued stocks for growth.
PSLAX: Putnam SmallCap Value-A | Undervalued Small-Cap Investment
PSLAX focuses on undervalued small-cap US stocks, offering potential for capital appreciation with a 1.18% expense ratio.
Futher Reading
https://finance.yahoo.com/quote/JSIVX/”>Yahoo: Janus Henderson SmallCap Value-L
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