Janus Henderson Investors recently released its fourth-quarter 2025 investor letter for the “Forty Fund,” showcasing the performance and key insights for the period. Despite challenges such as a government shutdown and slower employment growth, U.S. shares saw an increase driven by positive news on corporate earnings. The quarter started strong with excitement around artificial intelligence (AI) leading to robust returns. However, concerns over valuations in late October resulted in a decline in AI stocks.
The Forty Fund reported a return of 0.27% in the fourth quarter, compared to the Russell 1000® Growth Index, which returned 1.12%. The Fund’s performance was bolstered by stock selection in the healthcare and consumer staples sectors, while the information technology and consumer discretionary sectors detracted from overall performance. Looking ahead to 2026, the Fund remains optimistic about the market environment, supported by steady economic growth.
One of the highlighted stocks in the investor letter was Oracle Corporation (NYSE: ORCL), a global provider of products and services for enterprise IT environments. Oracle closed at $142.81 per share on March 26, 2026, with a market capitalization of $410.728 billion. The Fund expressed confidence in Oracle’s position in the AI market, citing its strong presence in the hyperscale market and strategic partnerships with leading AI companies. Despite a decline in the stock price during the quarter, the Fund believes Oracle is well-positioned to benefit from the ongoing AI capacity buildout.
Oracle Corporation (NYSE: ORCL) ranks 40 on the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. While 111 hedge fund portfolios held Oracle Corporation at the end of the fourth quarter, down from 122 in the previous quarter, the Fund sees potential in Oracle as an investment. However, they also highlight other AI stocks with greater upside potential and lower downside risk.
In conclusion, the Janus Henderson Forty Fund’s investor letter for the fourth quarter of 2025 provides valuable insights into their investment strategy and performance. As they navigate the evolving market landscape, the Fund continues to identify opportunities in sectors like healthcare and consumer staples while closely monitoring developments in the AI space. Investors can download the full investor letter for a comprehensive overview of the Fund’s top holdings and strategic outlook for 2026.
