| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.6% | 0.2% | 18.1% |
The Janus Henderson Forty Fund returned 0.27% in Q4 2025, underperforming the Russell 1000 Growth Index's 1.12% return. Stock selection in information technology and consumer discretionary sectors detracted from performance, while healthcare and consumer staples contributed positively. Oracle declined despite strong AI market positioning and multibillion-dollar cloud contracts, as investors questioned funding capacity and customer concentration. Eaton faced production bottlenecks despite strong data center power management opportunities. Healthcare holdings performed well, with Eli Lilly benefiting from accelerating GLP-1 sales and promising pipeline developments, while Madrigal gained from strong MASH treatment adoption. The managers remain optimistic about 2026, citing stable economic growth, resilient consumer spending, and potential Fed easing. They continue focusing on secular trends including AI adoption, life sciences innovation, digital transformation, and manufacturing reshoring. The portfolio emphasizes competitively advantaged companies in growing markets through a disciplined, bottom-up approach targeting idiosyncratic opportunities beyond high-profile stocks.
The fund focuses on competitively advantaged companies in healthy, growing end markets, capitalizing on secular growth trends including AI adoption, life sciences innovation, and digital transformation while maintaining a disciplined bottom-up approach to deliver long-term capital growth.
We are optimistic about the market environment in 2026, given the backdrop of continued stable economic growth. Consumer spending has remained resilient, especially for upper-income households benefiting from asset appreciation. We remain excited about secular growth trends that are transforming the economy and driving market performance, including the multi-year AI adoption trajectory, life sciences innovation, digitization of payments and commerce, continued cloud migration, and reshoring of manufacturing capacity.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 16 2026 | 2025 Q4 | AAPL, AMZN, ARGX, AVGO, DHR, ETN, GOOGL, LLY, MA, MDGL, MELI, MSFT, NVDA, ORCL, TSM | AI, Cloud, growth, healthcare, large cap, Pharmaceuticals, technology |
ORCL ETN LLY MDGL |
AI remains a strong driver of returns with Oracle emerging as a leading player through its hyperscale market position and AI partnerships. The multi-year AI… |
| Oct 16 2025 | 2025 Q3 | MELI, MRVL, ORCL, TSM | Artificial Intelligence, Cloud infrastructure, Growth Stocks, innovation, semiconductors |
ORCL US MELI US |
The Forty Fund remains centered on AI-driven secular growth themes and companies with durable competitive advantages. Holdings in Oracle and TSMC benefited from hyperscaler demand… |
| Jul 24 2025 | 2025 Q2 | AVGO, HWM, MA, ORCL, UNH | Artificial Intelligence, capital spending, Cloud, Digitization, semiconductors |
ORCL AVGO HWM |
The letter focuses on durable secular growth themes led by AI infrastructure, cloud computing, and digitization. Management highlights capital spending by hyperscalers and productivity gains… |
| Mar 31 2025 | 2025 Q1 | DDOG, HWM, ICE, MRVL | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
CloudCloud computing remains a core portfolio theme with strong positioning in hyperscale providers and infrastructure companies. Microsoft Azure showed 39% growth while Google Cloud exceeded 30% growth, both supported by AI workload adoption. The fund sees continued multi-year demand for cloud infrastructure and services as enterprises accelerate digital transformation. |
Azure Infrastructure Hyperscale Enterprise Growth | |
Data CentersEMCOR Group was initiated as a new position, viewed as a critical contractor enabling multi-year investment cycles across data centers, semiconductor fabrication, electrification, and broader infrastructure modernization. Its decentralized, cash-generative model, recurring service base, and exposure to structural growth drivers create a profile viewed as more durable than a typical cyclical contractor framework. |
Infrastructure Electrification Recurring Revenue Growth Drivers | |
GLP1Eli Lilly represents the fund's exposure to the GLP-1 obesity and diabetes treatment market, which continues to show exceptional growth. Mounjaro and Zepbound sales more than doubled year-over-year, with demand continuing to outpace supply. The fund sees this as a multi-decade growth opportunity with expanding indications and sustained competitive advantages. |
Obesity Diabetes Pharmaceuticals Growth Innovation | |
OnshoringReshoring of supply chains presents compelling opportunities for smaller companies. AZZ is positioned to benefit from domestic manufacturing reshoring trends, while the broader strategy targets companies that can capitalize on this shift. |
Reshoring Supply Chains Manufacturing | |
| 2025 Q3 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
Growth |
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Innovation |
||
| 2025 Q2 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 24, 2025 | Fund Letters | Nick Schommer | HWM | Howmet Aerospace Inc. | Industrials | Systems Software | Bull | New York Stock Exchange | Aerospace, aftermarket, Gas turbines, market share, Power generation | Login |
| Jan 16, 2026 | Fund Letters | Nick Schommer | ORCL | Oracle Corporation | Information Technology | Application Software | Bull | New York Stock Exchange | AI, cloud, hyperscale, infrastructure, Rpo | Login |
| Jan 16, 2026 | Fund Letters | Nick Schommer | ETN | Eaton Corporation plc | Industrials | Electrical Equipment | Bull | New York Stock Exchange | AI, datacenters, Electrification, Margins, Power | Login |
| Jan 16, 2026 | Fund Letters | Nick Schommer | LLY | Eli Lilly and Company | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | Diabetes, Glp1, Obesity, pharmaceuticals, pipeline | Login |
| Jan 16, 2026 | Fund Letters | Nick Schommer | MDGL | Madrigal Pharmaceuticals, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Adoption, Biotech, Druglaunch, Liverdisease, MASH | Login |
| Oct 16, 2025 | Fund Letters | Nick Schommer | ORCL US | Oracle Corp. | Information Technology | Systems Software | Bull | NYSE | AI, cloud, growth, infrastructure, Margins, Software, valuation | Login |
| Oct 16, 2025 | Fund Letters | Nick Schommer | MELI US | MercadoLibre, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Dominance, e-commerce, Fintech, growth, Latin America, Margins, platform | Login |
| Jul 24, 2025 | Fund Letters | Nick Schommer | ORCL | Oracle Corp. | Information Technology | Consumer Finance | Bull | New York Stock Exchange | AI, cloud, Gpu, Rpo, Sovereign Deals | Login |
| Jul 24, 2025 | Fund Letters | Nick Schommer | AVGO | Broadcom Inc. | Information Technology | Electronic Components | Bull | NASDAQ | AI, custom silicon, efficiency, hyperscalers, semiconductors | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to growth, helped by new health features and improved battery life. |
| AMZN | This quarter, we took profits in our hyperscaler portfolio companies (Amazon and Google) and increased our position in NVIDIA. |
| ARGX | Shares of argenx SE contributed to performance, rising 14.0% during the fourth quarter and finishing 2025 up 37.8%. Argenx is a leading biotechnology company best known for developing Vyvgart, the leading FcRn inhibitor for the treatment of autoimmune conditions. Sales of Vyvgart continue to progress well in Generalized Myasthenia Gravis (Generalized MG) while the Chronic Inflammatory Demyelinating Polyneuropathy (CIDP) launch is also off to a strong start. |
| AVGO | During the quarter, we initiated a below-average weight position in leading semiconductor and infrastructure software company Broadcom. Broadcom's ongoing transformation from a provider of custom ASICs to a full rack-scale solutions vendor, including scale-up networking, marks a significant improvement in its strategic positioning compared to earlier in the year. This strategic evolution has been validated by recent product launches, such as the Scale-up Ethernet solution, and committed orders from major customers like Anthropic. |
| DHR | After lagging through the first three quarters of 2025, Danaher's stock rebounded during Q4 as bioprocessing, life science, and diagnostics demand continued to recover from a cyclical trough. On the 3Q25 call, management established conservative 2026 growth expectations. Revenue is expected to continue to lag long-term trends at 3-6% but improve throughout the year. |
| ETN | Eaton's shares pulled back in August following strong performance through July. Like many companies in the industrials complex, Eaton's results did not exceed very high investor expectations. Moving into 2026, we anticipate accelerated growth for the company that is tied to strong trends in data center, aerospace, and defense markets. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| MDGL | The Healthcare sector was once again led by Madrigal |
| MELI | E-commerce Volatility: turbulence in our e-commerce portfolio companies, Sea Ltd (Southeast Asia) and MercadoLibre (Latin America), amidst aggressive price wars. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NVDA | Capital spending from Google, Microsoft, Amazon, Meta, OpenAI, and more have led to Nvidia becoming the Rrst 5 trillion market cap company. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| TSM | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
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