UBER - Janus Henderson Global Sustainable Equity (ADR) Managed Account Q4 2024 Commentary

2025-02-14 07:25:00 ET

Summary

• The Portfolio returned -5.71% (gross) and the MSCI World Gross TR returned -0.07%.
• Market narrowness and stock selection drove relative underperformance.
• Icon, Humana, and Uber were the among the largest detractors, and Spotify, McKesson, and T-Mobile among the largest contributors.
• Despite global tensions and uncertainties, we maintain a positive economic outlook, focusing on companies with attractive valuations and a commitment to a sustainable future.

Investment environment

The fourth quarter marked an underwhelming end to a strong year for global equity markets, with the MSCI World Index posting a small negative return (in U.S. dollars). Donald Trump’s win in the U.S. presidential election sparked a rally in U.S. equities in November, although his threats of igniting a global trade war meant markets lagged elsewhere – most notably in Europe. December was a weak month for risk assets, with the bond market showing signs of caution. The 10-year U.S. Treasury yield ( US10Y ) increased to just over a six-month high after the U.S. Federal Reserve (Fed) projected fewer rate cuts for 2025 than previously expected. There were multiple elections around the world during the period, with over 70 countries going to the polls. But the U.S. presidential election dominated the narrative. The rally following Trump’s victory was spurred by investors embracing the concept of deregulation, extended tax cuts, and a generally more pro-business administration. Cryptocurrencies and shares in banks and Tesla ( TSLA ) – given Elon Musk's close relationship with Trump for the latter – outperformed. Meanwhile, the potential for higher import tariffs, reductions in subsidies for green initiatives, and healthcare reform meant that companies with complex supply chains, clean energy solutions, or healthcare exposure generally underperformed....

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