Adam Hetts of Janus Henderson - Portfolio Construction Strategy and Market Outlooks

Orion's The Weighing Machine

Portfolio construction is a crucial aspect of investment management, directly influencing the trajectory of one's financial endeavors. As the global economy is constantly in flux, the challenge for financial advisors lies in constructing portfolios that cope with the changing dynamics of the economic landscape while achieving clients' long-term goals.

In this episode, Rusty and Robyn talk with Adam Hetts, Portfolio Manager and Global Head of Multi-Asset at Janus Henderson Investors. Before joining the firm in 2017, Adam held various roles at Goldman Sachs, including Vice President and Senior Portfolio Strategist, where he led efforts in the U.S. and the Asia Pacific regions. At Janus Henderson, Adam and his team of strategists serve as a resource to their clients, assisting them in deconstructing, analyzing, and reconstructing their portfolios to identify risks and achieve results aligned with their investors' long-term objectives.

Leading a team that constructs multi-asset solutions for clients' complex investment objectives, Adam talks to Rusty and Robyn about portfolio construction strategy and market outlooks. He shares insights on the current market environment, investor sentiment, and the questions financial advisors are receiving from clients. Adam also provides an in-depth analysis of the 60/40 balanced investment portfolio, discussing the equity side, fixed income concerns, and the importance of diversification.

Key Takeaways

• [02:57] - Adam's professional background and role at Janus Henderson.
• [05:24] - Key takeaways from portfolio construction and strategy team discussions.
• [07:22] - Janus Henderson's insights on the equity side of the market.
• [10:16] - Adam's outlook and recommendations on non-U.S. stocks.
• [12:49] - The most common concerns about fixed income.
• [15:53] - The philosophy Adam and his team apply when building model portfolios.
• [19:05] - Adam's thoughts on the impact of artificial intelligence in the financial industry.
• [20:15] - How Adam maintains his physical and mental energy to perform at a high level.
• [21:46] - Adam's recommendations for content.

Quotes

[05:58] - "What we've seen happening now is the environment and the sentiments have been improving. It's not so much the Fed pivot as the big obsession for our clients. It's the portfolio pivot from defense to offense and just how soon and how aggressive to be with that pivot." ~ Adam Hetts

[06:49] - "The most common conversation for us on our equity consultations is digging into the nuance and balance between the historically overvalued large cap and the undervalued small and mid-cap pieces." ~ Adam Hetts

[16:48] - "We know clients want low fees, so we're open architecture to bring in a bigger opportunity set, including blending in passive ETFs. We know clients want to stay in their comfort zone, so we're globally diversified in our models. The goal is to help clients stay invested in the long run." ~ Adam Hetts

Links

• Adam Hetts on LinkedIn
• Janus Henderson Investors
• Janus Henderson Portfolio Construction and Strategy Team
• Janus Henderson Global Multi-Asset Model Portfolios
• Janus Henderson Market GPS Investment Outlook
• Intro Article by Adam in Market GP
• Janus Henderson Balanced Portfolio Recipe Webinar
• Shake It Off by Taylor Swift
• Goldman Sachs
• Continental Drift by Russell Banks
• The Wager by David Grann
• The Psychology of Money by Morgan Housel
• Just Keep Buying

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2307-OPS-8/18/2023