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Co-Portfolio Manager departure

Ethan Lovell, Portfolio Manager (PM) and Research Analyst on the Global Life Sciences Team, decided to retire from the asset management industry to pursue personal interests. M. Lovell will continue to be named Co-PM through May 2019 and will remain at the firm through June 2019 to assist with the transition.

Andy Acker, PM and Health Care Sector Team Leader, will continue to lead the strong team of health care sector analysts and maintain the firm’s team-based approach to health care investing.

Andy Acker joined Janus Henderson in 1999 and has been PM on the Global Life Sciences strategies since 2007. Under Andy’s leadership, the strategy’s investment philosophy and process will not change. The team remains committed to delivering strong risk-adjusted returns for clients.

Concurrently, Janus Henderson announced the addition of Luyi Guo, Ph.D., CFA, as Analyst on the Global Life Sciences Team (see below for biographies of the whole team). Ms Guo will assume much of Mr Lovell’s large cap pharmaceutical company coverage responsibilities.

Prior to joining Janus Henderson, Luyi was senior equity analyst at PNC Capital Advisors covering pharmaceutical, biotechnology, health care equipment and other life sciences sub-sectors. Prior to PNC, Luyi was global marketing director at Novartis (previously GlaxoSmithKline), where she helped launch a $1 billion oncology franchise. Prior to that, Luyi held several corporate and investment positions within the health care industry.

Looking forward, the Janus Henderson Global Life Sciences Team will consist of seven members, including three Ph.D.s, who combine for more than a century of dedicated health care investment experience. The team’s core focus on understanding the science and business in the dynamic health care sector remains unchanged.

WSP opinion

Ethan Lovell joined Janus Henderson in 2007 and we hold him in high regards given his 25 years of experience in the healthcare sector, with a solid background as analyst in global pharmaceuticals and medical devices industries. He served as assistant PM on the Global Life Sciences strategy and was appointed co-PM in 2016.

We acknowledge that Ethan Lovell was materially involved in portfolio management responsibilities for the last 3 years, however we think Andy Acker is the key investment professional within the Health Care Sector team, and he has been the true architect of this strategy and main contributor to its successful track record since inception.

The departure of Ethan Lovell is a material change, but the strategy has always been managed with a team-approach despite specific sector coverage and investment responsibilities. The fund benefits from a clear process-driven framework that offset partially any potential key man risk.

We think the workload for Andy Acker, as PM and Health Care Sector Team Leader, is still manageable. Total assets across all strategies under his responsibility is 8.7 Bn USD as of end of 2018. Besides, he is PM on the two open-ended funds of the Global Life Sciences (GLS) strategy and 6 segregated accounts which are derived from the same opportunity set as GLS with slight differences. In addition, he is co-PM of the Global Biotechnology Lux domiciled SICAV launched in December 2018. We think, it is still a decent workload to remain focus on portfolio management and stock research.

In addition, the performance attribution of stocks under Lovell’s coverage has been disappointing for the last 3 years, particularly in 2018, 2016 and 2015. We think the addition of Luyi Guo could be a positive change to generate new fresh investment ideas and stock picking. We will monitor closely her contribution to the strategy.

In conclusion, , despite the underperformance in Q4 2018 and co-PM departure, we confirm Janus Henderson Global Life Sciences fund as our best choice in the Sector Healthcare Equity peer-group and we maintain this fund with the “Selected” status.

Biographies

Andy Acker, CFA, Portfolio Manager

Andy Acker is a Portfolio Manager at Janus Henderson Investors responsible for managing the Global Life Sciences strategy since 2007 and a biotechnology strategy since its launch in 2018. He also leads the firm’s Health Care Sector Research Team. Mr. Acker was assistant portfolio manager on the Global Life Sciences strategy from 2003 to 2007. He joined Janus in 1999 as a research analyst focused on companies in the biotechnology and pharmaceutical industries. Prior to this, he worked as a strategy consultant for the Boston Consulting Group and as a health care analyst for Morgan Stanley Venture Partners.

Mr. Acker received his bachelor of science degree in biochemical sciences from Harvard University, graduating magna cum laude and Phi Beta Kappa. He also earned an MBA with honors from Harvard Business School. Mr. Acker holds the Chartered Financial Analyst designation and has 23 years of financial industry experience.

Daniel Lyons, Ph.D., CFA, Portfolio Manager | Research Analyst

Daniel Lyons is a Portfolio Manager and Research Analyst at Janus Henderson Investors responsible for co-managing a biotechnology strategy since 2018. Dr. Lyons started consulting for Janus in 1997 and joined the Health Care Sector Research Team full time in 2000. As a research analyst, he focuses on the biotechnology and life science tools sectors.

Dr. Lyons received his bachelor of arts degree in biochemistry and chemistry from Rice University, graduating magna cum laude. He also earned a Ph.D. from Stanford University’s program in immunology and conducted postdoctoral research with a Nobel Laureate at the University of Colorado.

He holds the Chartered Financial Analyst designation and has 19 years of financial industry experience.

Aaron Schaechterle, Research Analyst

Aaron Schaechterle is a Research Analyst at Janus Henderson Investors primarily focused on small- and mid-capitalization companies in the health care and industrials & materials sectors. He is a member of the Health Care and Industrials & Materials Sector Research Teams and covers health care information and medical technology companies. Prior to joining Janus in 2014, Mr. Schaechterle worked in the information services and technology group at GTCR, a Chicago-based private equity firm. Before that, he served as an investment banking analyst for Barclays Capital and Lincoln International, executing corporate finance transactions and advisory projects for clients in the financial exchanges and industrial sectors.

Mr. Schaechterle earned his bachelor of business administration degree in finance from the University of Iowa, where he served as captain of the varsity tennis team. He received his MBA from Harvard Business School, graduating with high distinction as a Baker Scholar. Mr. Schaechterle has 12 years of financial industry experience.

Rich Carney, CFA, Research Analyst

Rich Carney is a Research Analyst at Janus Henderson Investors primarily focused on companies in the health care sector. Prior to joining Janus in 2015, Mr. Carney was a portfolio manager for Gerlach, Way, Scarth & Associates, where he managed high-net-worth portfolios. Previously, he was a partner and portfolio manager/analyst at Platte River Capital responsible for co-managing an equity portfolio as the lead analyst in the health care and financial services sectors. Mr. Carney’s experience also includes serving as a research analyst at The Boston Company, Silvergate Capital Management and Invesco.

Mr. Carney received his bachelor of arts degree in economics from Rutgers University and a master of science degree in finance from Northeastern University. He holds the Chartered Financial Analyst designation and has 25 years of financial industry experience.

John Scotti, DPhil, Research Analyst

John Scotti is a Research Analyst at Janus Henderson Investors covering the Health Care sector with a focus on the biotechnology industry, a position he has held since joining Janus in 2017. Prior to Janus, Dr. Scotti was director of equity research and senior analyst at Evercore ISI. He started at Evercore in 2014 as an equity research associate.

Dr. Scotti earned his doctoral degree in organic chemistry from the University of Oxford, where he was a Rhodes Scholar. He received his bachelor of science degree in biological chemistry and master of science degree in chemistry from the University of Chicago, graduating with honors and Phi Beta Kappa. Dr. Scotti has 5 years of financial industry experience.

Luyi Guo, Ph.D., CFA, Research Analyst

Luyi Guo is a Research Analyst at Janus Henderson Investors covering the pharmaceutical industry. Prior to joining Janus Henderson, Ms. Guo was senior equity analyst at PNC Capital Advisors covering pharmaceutical, biotechnology, health care equipment, and other life sciences sub-sectors. Prior to PNC Capital Advisors, Ms. Guo was global marketing director at Novartis (previously GlaxoSmithKline), where she helped launch a $1 billion oncology franchise. Prior to that, Ms. Guo held several corporate and investment positions within the health care industry.

Ms. Guo holds a Ph.D. in Medicinal Chemistry from the University of Michigan and an MBA from The Wharton School at the University of Pennsylvania.

 

Ryan Smith, CFA, Associate Analyst

Ryan Smith is an Associate Analyst at Janus Henderson Investors primarily focused on the health care sector. He has held this position since 2017.

Prior to that, Mr. Smith was a research associate since 2014. Before joining the investment team, he worked in mutual fund operations on the financial and performance reporting staff. Earlier in his career, Mr. Smith was an investor accounting analyst at Aurora Bank FSB.

Mr. Smith received his bachelor of science degree in finance from Miami University. He holds the Chartered Financial Analyst designation and has 10 years of financial industry experience.

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