MM recently looked at UK operating fund manager JHG which has been struggling since delivering a disappointing quarterly update in May. The stocks downside momentum is clear and catching this falling knife has proved an expensive exercise since Mid-2021 but history tells us stocks will eventually attract buyers if they simply become too cheap. JHG is currently trading on an Est P/E valuation of 8.5x for 2022 while being forecast to yield 6.65% over the next 12-months.
- The unfolding changes around the UK Prime Minister looks unlikely to reignite this embattled London-based fund manager but pure valuation may in time.
NB The Australian Fund Managers as a group have significantly underperformed the ASX over the last 1-2 years.
MM likes JHG’s valuation into further weakness
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