This year’s significant rise in stock market volatility highlights the significance of diversifying your investments. However, even when you expand your holdings beyond American markets, it makes sense to consider firms that can withstand economic downturns as part of a “resilient” portfolio, notes Julian McManus from Janus Henderson Investors.
McManus jointly manages the $3.3 billion Janus Henderson Overseas Fund JIGFX and the $2.7 billion Janus Henderson Global Select Fund JORFX. His base is Denver, and he has been associated with the company since 2004. Each of these funds holds a four-star rating (on a scale of five) according to Morningstar.
McManus informed ecosundries.com that during the last fourteen days, he and his team discovered “markets impose discipline” and gained insights into “the Trump administration’s tolerance for discomfort and their primary concerns.”
With increasing market volatility and worries about tariffs impacting stock performance, investors seek methods to protect themselves from risk while remaining invested. defensive options such as CVS, Coca-Cola, and Duke Energy might offer the solution they’re searching for.
President Donald Trump declared his series of “freedom day” tariffs for most nations on April 2 following the close of the stock market. Over the subsequent four trading days, the S&P 500 dropped by 12.1%. Later, on April 9, Trump stated that he would pause most new tariffs for a period of 90 days, with exceptions for imports from China as well as new taxes on vehicle imports. That same day, the S&P 500 surged by 9.5%.
The disturbance in the bond market could potentially have been
A stronger incentive prompting the Trump administration to moderate its tariff strategies
The yield on 10-year U.S. Treasury notes increased by 48 basis points during a single week, reaching 4.49% on Friday, indicating considerable stress, as noted by McManus. An increase in bond yields signifies a drop in their market price, with the opposite also being true. On early Monday, however, the 10-year yield dropped slightly to 4.43%.
“When the extent of the tariffs being suggested — not only against China but virtually everywhere else trading with the U.S. — reached such an extreme point, and America attempted to wage a trade battle on all fronts, the markets essentially dismissed this vision for the future,” McManus stated.
He stated, “It has become apparent that China was actually Trump’s primary focus from the beginning. It now appears to be a tactical error to engage in a trade war across multiple fronts simultaneously.”
Defensive stock selections
McManus stated that the investment approaches of the Janus Henderson Overseas Fund and the company’s Global Select Fund are quite alike. Both funds are managed jointly by McManus and Christopher O’Malley. The Overseas Fund focuses on businesses located internationally, even though some may have their main share listings within the U.S. On the other hand, the Global Fund incorporates American equities into its holdings alongside international investments.
No matter what opinions people may hold regarding Trump’s trade strategies and their potential for stabilization, “initially, there will be significant inflation across the board,” according to McManus.
McManus pointed out seven particular stocks. Among these, three possess subscription-based business models that he thinks “have the potential to thrive even during an economic downturn.” The companies mentioned include Spotify Technology SA, Deutsche Telekom AG, and T-Mobile US Inc. According to data from FactSet, Deutsche Telekom holds 51.5% of T-Mobile’s common shares.
McManus similarly pointed out Liberty Media Corp.’s Series C Liberty Formula One as a protective investment, and for ease of reference, we’ll simply refer to it as Formula One.
According to McManus, the firm “boasts an incredibly devoted audience and fan community that extends well past merely attending the races.” He noted that Formula One’s leadership has executed “an outstanding effort in enhancing and expanding” their operations, leading to a situation where race teams previously struggling financially are now being sold for around one billion dollars.
Formula One boasts a market valuation of $17.2 billion. According to McManus, it stands out as “one of the final sports properties still available in public markets.” He further suggested that entities running streaming platforms like Netflix Inc., Apple Inc., or Amazon.com Inc. might be inclined towards acquiring Formula One.
McManus also mentioned his preference for two defense contractors: BAE Systems PLC and Rheinmetall AG, both of which are clear choices for bolstering Europe’s military capabilities.
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The seventh corporation mentioned by McManus was BYD Co. Ltd., which specializes in manufacturing electric cars and hybrid models. According to figures gathered by analysts from Cantor Fitzgerald Europe, BYD reported delivering 1,524,270 vehicles in the last quarter, significantly higher than Tesla Inc.’s delivery count of 495,570 units for the same period.
Within its domestic Chinese market, BYD holds a clear edge over Tesla. However, McManus remains optimistic regarding BYD’s expansion efforts into European markets as well. It should be noted that their upcoming facility in Hungary anticipates commencing operations sometime in the latter part of this calendar year.
These are the kinds of companies that provide us with defensive capabilities and make up the backbone of our portfolio,” McManus stated. He then mentioned that for an offensive approach, he preferred European and Japanese banks, describing them as “inexpensive regardless of the metric used,” strongly funded, and “extremely well-managed.
Below are the top 10 investments (from a total of 44) in the Janus Henderson Overseas Fund as of February 28:
| Company | Ticker | Country | Percentage of Janus Henderson Overseas Fund |
| Taiwan Semiconductor Manufacturing Company Limited | Taiwan | 6.69% | |
| BAE Systems PLC | U.K. | 4.33% | |
| Liberty Media Corporation’s Series C Liberty Formula 1 | United States | 3.90% | |
| Erste Group Bank AG | Austria | 3.89% | |
| Dai-ichi Life Holdings Inc. | Japan | 3.51% | |
| Sanofi S.A. | France | 3.32% | |
| Deutsche Telekom AG | Germany | 3.21% | |
| HDFC Bank Ltd. | India | 3.09% | |
| AstraZeneca PLC | U.K. | 3.03% | |
| Resona Holdings Inc. | Japan | 3.02% | |
| Source: Janus Henderson Investors |
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Below are the top 10 investments (among 53 total holdings) in the Janus Henderson Global Select Fund as of February 28:
| Company | Ticker | Country | Percentage of Janus Henderson Global Select Fund |
| Taiwan Semiconductor Manufacturing Company Limited | Taiwan | 6.59% | |
| Microsoft Corp. | U.S. | 4.55% | |
| Nvidia Corp. | U.S. | 3.92% | |
| Arthur J. Gallagher & Co. | U.S. | 3.91% | |
| BAE Systems PLC | U.K. | 3.89% | |
| Liberty Media Corp. Series C Liberty Formula One | U.S. | 3.58% | |
| Amazon.com Inc. | U.S. | 3.31% | |
| TJX Cos. Inc. | U.S. | 3.19% | |
| Chipotle Mexican Grill Inc. | U.S. | 2.93% | |
| Teck Resources Ltd. Category B Shares | Canada | 2.70% | |
| Source: Janus Henderson Investors |
Tap on the ticker symbols for additional details about every firm.
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Tomi Kilgore’s comprehensive overview of the data accessible on the ecosundries.com quote page
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