Janus Henderson Investors, an investment management company, released its “Forty Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Fund returned -12.25% in the quarter, underperforming the Russell 1000 Growth Index (-9.78%). Despite this, its 10-year annualized returns are approximately 15%. The recent quarter’s challenges stemmed from volatility and stock selection in the consumer discretionary sector. Initially, strong economic growth supported the market, but shifts occurred due to the Middle East conflict and inflation concerns. Artificial intelligence (AI) continued to be a strong investment theme, evidenced by rising share prices for AI supply chain companies. The Fund maintains a positive view on the economic outlook despite current uncertainties. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Janus Henderson Forty Fund highlighted like DraftKings Inc. (NASDAQ:DKNG). DraftKings Inc. (NASDAQ:DKNG) is an American digital sports entertainment and gaming company. On June 16, 2026, DraftKings Inc. (NASDAQ:DKNG) closed at $28.51 per share. One-month return of DraftKings Inc. (NASDAQ:DKNG) was 13.25%, and its shares lost 28.47% over the past 52 weeks. DraftKings Inc. (NASDAQ:DKNG) has a market capitalization of $14.00 billion.
Janus Henderson Forty Fund stated the following regarding DraftKings Inc. (NASDAQ:DKNG) in its Q1 2026 investor letter:
“DraftKings Inc. (NASDAQ:DKNG), another relative detractor, is a leading online sports-betting and iGaming company. Shares fell after the company reported weaker initial 2026 guidance, partly reflecting higher operating costs and slower customer growth trends. These results fueled concerns that traditional sports betting may be losing ground to the growing popularity of the sports prediction markets. DraftKings is taking steps to bolster its competitive position through its expansion into the predictions market, where we believe it may benefit from its brand strength and economies of scale. We continue to see long-term opportunity for the company, especially given its commitment to innovation and the use of AI to drive customer engagement.”
DraftKings Inc. (NASDAQ:DKNG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held DraftKings Inc. (NASDAQ:DKNG) at the end of the first quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of DraftKings Inc. (NASDAQ:DKNG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DRAFTKINGS INC. (NASDAQ:DKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered DraftKings Inc. (NASDAQ:DKNG) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
