In the third quarter of 2025, the Janus Henderson Small/Mid-Cap Value Fund experienced a return of 7.14%, a modest underperformance compared to its benchmark, the Russell 2500TM Value Index, which posted an 8.17% gain.
During this period, stock selection within the financial and healthcare sectors proved to be a drag on the fund's relative performance. Conversely, strategic choices in consumer staples and real estate sectors offered positive contributions. The broader market saw an uptick driven by favorable corporate earnings reports and anticipations of interest rate reductions from the Federal Reserve. The Fed indeed lowered its policy rate by 25 basis points in September, with market participants expecting further reductions.
Even as the market anticipates continued volatility, the investment team at Janus Henderson remains steadfast in its disciplined value-oriented approach. This steadfastness is grounded in a thorough analysis of market dynamics and a commitment to identifying undervalued assets, irrespective of short-term market fluctuations.
This unwavering commitment to a disciplined value investment approach is crucial for navigating dynamic market conditions and achieving long-term financial objectives. By focusing on fundamental value and strategic sector allocation, investors can build resilient portfolios capable of withstanding market shifts and capitalizing on opportunities.