Janus Diversified Alternatives Fund (JDATX)
In its marketing material, Janus Funds describes Janus Diversified Alternatives Fund (JDATX) as providing an “absolute return with true diversification.” What this means is that the fund has a low correlation to stocks and bonds.
Managed by three professionals who all joined the firm in 2012, JDATX seeks to zig when stocks and bonds zag, reducing the overall portfolio volatility.
At least, that’s the plan.
Without getting to deep into the nitty gritty of what this fund does, suffice it to say the managers use a proprietary multifactor process to invest across various types of assets including equities, fixed income, commodities and currencies. Among its top equities are Canadian Pacific Railway (CP) and Comcast (CMCSA). While it did little in terms of performance in its first year as a mutual fund, should equity markets take a dip and commodities recover, this could be a good way to eke out returns if the bull market comes to an abrupt end. At least Janus Funds is hoping that’s the case.
You won’t find any kind of rating on this mutual fund. Janus Funds opened JDATX in December 2012; a little more than 12 months later, its net assets total just $85 million.
Also, don’t be scared by Diversified Alternatives’ 1.52% management expense ratio — that’s considered below average for the alternative investment category.
As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
This piece was updated from Jan. 27.