Janus Henderson's Hermon increases weighting to unloved leisure stocks

'Will emerge in a strong position'

Janus Henderson’s Neil Hermon has "counter intuitively" increased his position in four leisure stocks in his investment trust, declaring "new ideas are a luxury we do not have time for".

Hermon, who manages the £420m Henderson Smaller Companies investment trust, said his conversations with companies have changed tone since the start of the coronavirus pandemic and ensuing lockdown in many economies. "Forget what happened in 2019 and the first two months of 2020," Hermon said. "Questions now focus around leverage, debt facilities, liquidity, monthly cash burn, and so on. It is more a matter of whether corporates can get through this maelstrom." 'Exercise in survival' as Artemis Income preps for heavy dividend cuts The manager added that conventional valuation measur...