The strategy has backfired this year, with Janus Unconstrained down 5.6 percent through Sept. 11, among the worst performers in its class. Its assets dropped to $1.15 billion as of Aug. 31 from about $2.2 billion at the end of December.
The average value of the fund’s futures contracts purchased rose to $1.45 billion in the first half of this year from $112 million reported for the six months ended Dec. 31, according to the filings. The average value of its futures contracts sold also rose, to $1.1 billion from $214 million, over the same time period.
Janus Unconstrained’s combined losses on futures tied to commodities, currencies, equities and interest rates totaled $212 million during the first half of this year, including the $153 million lost on interest-rate bets. Though the total was partially offset by roughly $86 million of gains on options, that’s a lot of money for any fund to lose on futures, said Ader.
“It gives new meaning to the term unconstrained,” he said.
This article was provided by Bloomberg News.