Janus Henderson flags McKesson as key detractor amid drug distributor derating
The Global Sustainable Equity Fund outperformed its benchmark in the second quarter of 2026, driven by technology exposure, even as it identified McKesson Corporation as a significant drag on performance.
Janus Henderson Investors has identified McKesson Corporation as one of the largest detractors in its Global Sustainable Equity Fund for the second quarter of 2026. In its investor letter released this week, the asset manager attributed the decline in McKesson’s share price to a broader market derating of drug distributors, citing structural concerns over pricing models and regulatory exposure.
The fund noted that investor anxiety has intensified regarding GLP-1 cash-pay pricing, a shift in patient coverage towards insurers, and the potential impact of specialty pharmacy exposure ahead of a significant wave of loss-of-exclusivity events over the next five years. These factors have contributed to concerns that lower drug pricing could compress distributor margins.
Despite the headwinds, Janus Henderson maintained its investment thesis for the US healthcare company. The fund described McKesson as a leading player in a consolidated market, highlighting its defensive growth characteristics, scale advantages, and durable customer relationships as key reasons for holding the position.
The broader portfolio, however, delivered strong results during the period. The Global Sustainable Equity Fund returned 16.17% in the second quarter, outperforming the Index’s 13.16% gain and the Peer Group’s 12.98% return. This performance was largely driven by an overweight position in information technology, particularly AI infrastructure, which saw returns exceed 30% alongside strong performances from financials and industrials.
McKesson shares closed at $796.35 on 15 July 2026, reflecting a market capitalisation of $93.23 billion. The stock posted a one-month return of 9.60% and a 52-week gain of 15.82%. In the fourth quarter of fiscal 2026, the company reported earnings per diluted share of $11.69, representing a 16% increase year-on-year.
Other detractors for the Janus Henderson fund included Spotify and Intercontinental Exchange. Meanwhile, McKesson was not included in the list of the 40 most popular stocks among hedge funds heading into 2026, although 73 hedge fund portfolios held the stock at the end of the first quarter, up from 72 in the previous quarter.
