The talk of the town is that Janus Capital
] is overexposed to the equity markets and that it needs to become more diversified, but its focus on equities could become an advantage, Seeking Alpha's
Marshall Hargrave writes.
Its latest earnings report posted earnings per share below consensus and the asset manager has seen its investment losses broaden, Hargrave writes. Its net outflows are also increasing. Despite all this, the AUM was up 5.4 percent and revenues were up 5 percent, both trends Hargraves considers positive.
While things will continue to be tough for Janus in the short term, the tailwinds outweigh the headwinds, Hargraves says, because short sellers should exit and the trend should reverse in favor of equity funds once interest rates rise. Equity fund flows are already improving, Hargraves notes.
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