Janus Capital Management is a privately owned investment management firm. Bill Gross is the portfolio manager, responsible for managing the Janus Global Unconstrained Bond strategy.
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Janus Capital recently disclosed its holdings as of 2Q16. According to the 13F filing, the firm made some key changes in its holdings during the quarter. Alphabet (GOOG) is its top holding, and it constituted 3% of its portfolio in 2Q16. Microsoft (MSFT) constituted 2.1% of the fund’s portfolio as of 2Q16. Microsoft was the largest position increase for Janus during the quarter. Previously, the firm held 21.1 million shares of MSFT. In 2Q16, it bought another 11.0 million shares.
Janus Capital Management is the 25th largest investor in Microsoft, holding about 32.1 million shares worth $1.9 billion. The largest investor in MSFT is Vanguard with 504.2 million shares.
In 2Q16, the firm’s sector allocation was heavily tilted towards the health care (XLV), technology (XLK), and the consumer discretionary (XLY) sectors. These three sectors constitute 20.7%, 18.9%, and 13.9% of its portfolio, respectively. Taking a position in the health care sector and consumer discretionary sector indicates the investor is making an investment in the defensive sector. The defensive sector has little correlation with the business cycle. This indicates that the firm is less optimistic about a recovery in the business cycle in the United States (QQQ) (SPY).
In the next part of this series, we will analyze Janus Capital’s largest reduction in 2Q16.