Denny Fish, Portfolio Manager, Janus Henderson Investors met with Julie Cooling, Founder & CEO, RIA Channel to discuss how the firm incorporates disruption within their Global Technology Fund (JATIX).
“We have a two-fold approach to disruption,” explains Fish on filling the portfolio with companies that are traditionally disruptive as well as those that are difficult to disrupt. Two measures, resilience and optionality, are used to position and balance the portfolio. Resilient positions are taken on “durable companies that have the ability to grow and innovate over time,” and optional positions are taken on “companies in the earlier stages of the life cycle, with more risk but also a greater upside,” says Fish.
Not all companies fall strictly under one category. Fish gives Alphabet as an example of a company that remains resilient with the steady innovation of Google, but also very disruptive in their investments in autonomous driving and YouTube.
“We really think we’re in the early stages of megathemes,” says Fish. Going forward, cloud technology, AI, and “the internet of things,” will continue to impact and disrupt business models of future, predicts Fish.
Currently, The Janus Henderson Global Technology Fund (JATIX) has $3.14 billion in assets under management.