By Ian Salisbury

Investors in Janus Henderson may be thrilled that the company has a buyer. The firm, which oversees $493 billion in assets, is set to be acquired by Trian Fund Management and General Catalyst for $52 a share in cash, after rival Victory Capital Holdings dropped out of the bidding earlier this week.

The price represents a 25% premium on Janus' pre-bid share price, valuing the company at around $8 billion. Trian and General Catalyst won the deal after raising their offer by $3 a share. Trian, led by activist Nelson Peltz, has been an investor in Janus for years. Buying the firm for a premium indicates confidence in a turnaround being orchestrated by Janus CEO Ali Dibadj, who took over in 2022. He is expected to stay on after the deal, suggesting no major changes in the firm's strategy.

The proposed sale offers a happy resolution for Janus shareholders, who have seen the stock lag behind the S&P 500 for much of the past decade. It has been outperforming since Dibadj took over, thanks to an emphasis on growth areas like fixed income, alternatives, and European exchange-traded funds.

Fund flows have also turned positive on his watch. The company had net inflows of around $57 billion last year. Since Dibadj's arrival, Janus has had inflows in six of the past seven quarters after suffering outflows for 21 quarters -- all good reasons for Trian and General Catalyst to acquire the firm.

While the deal looks good for Janus shareholders, it doesn't address key questions for investors in its funds: Should you own them, and how have they performed?

Janus is thriving in fixed income. The company says it's the third-largest fixed-income ETF manager globally. And strong performance is helping the firm overall. The company says close to two-thirds of its assets under management are beating their benchmarks over three-, five-, and 10-year periods (as of Dec. 31).

Janus stock funds aren't as clear-cut winners.

Some sector and foreign funds have fared well, as has the $26 billion Janus Henderson Research Fund, which ranks among the top 30% of large growth finds over the past three years, according to Morningstar. Yet many other Janus U.S. stock funds have delivered average or below average performance over the past three- and five-year periods, according to Morningstar.

Janus's fixed-income lineup saw net inflows of nearly $67 billion last year. Conversely, its stock funds have seen net outflows in each of the past three years, including $14 billion last year.

Janus is hardly alone in battling to hold equity assets. Many

traditional stock-picking firms, such as   T. Rowe Price and Franklin Resources, have seen outflows in stock funds in an era dominated by index-tracking ETFs. Most active managers fail to beat benchmark indexes long-term. Across the industry, investors drained just over $500 billion from actively managed stock mutual funds last year, according to Morningstar. 

Janus was once known as a dominant force in tech investing. The Janus Twenty fund was a darling of the late 1990s tech run up. The Janus Twenty's modern-day successor, the Janus Henderson Forty Fund, has $22 billion in assets, but results have been middling. It has returned 9% a year on average over the past five years, ranking it in the 63rd percentile among large-growth funds, according to Morningstar.

Other funds have also delivered below-average returns over that time frame, such as Janus Henderson Growth and Income and Janus Henderson Contrarian Fund.

Bright spots in equities include Janus Henderson Overseas and Janus Henderson Global Life Sciences. Both are in the top 30% of performers in their respective categories over the past five years, according to Morningstar.

For fixed income investors, Janus has also become a leader. The Janus Henderson AAA CLO ETF has collected $27 billion since its launch in 2020 and has delivered average annual returns of 4.6% over the past five years, putting it in the top 25% of peers.

The $6.7 billion Janus Henderson Mortgage-Backed Securities ETF and the $3.1 Janus Henderson Short Duration Income ETF both rank in the top third of their performance categories, according to Morningstar.

Janus on Wednesday launched the U.S. Equity Enhanced Income ETF. The fund employs a covered-call option strategy to give investors stock exposure with reduced volatility. The firm has also delved into AI, launching the Global Artificial Intelligence ETF in 2025.

For fund investors, one takeaway from the Trian deal is that Janus is likely to keep launching new products, while trying to stop outflows on the equity side. Its fixed income funds have largely proved their mettle. Its stock funds remain a mixed bag.

Write to Ian Salisbury at ian.salisbury@barrons.com

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March 27, 2026 02:00 ET (06:00 GMT)

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