Investing in growth stocks feels like trying to catch lightning in a bottle. You want the big winners—the Nvidias and Microsofts of the world—but you don't want to get burned when the market decides to take a breather. That’s exactly where the Janus Henderson Forty Fund Class D (JFRDX) sits. It’s a bit of a weird bird in the mutual fund world. Most funds brag about how many hundreds of stocks they own to "diversify" away the risk. This one? It does the opposite.
It picks 30 to 40 stocks. That’s it.
If you're looking for a safe, boring index tracker, this isn't it. But if you’ve ever wondered why some portfolios seem to sprint while others just crawl, the "Forty Fund" strategy explains a lot about how high-conviction investing actually works in 2026.
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The High-Conviction Gamble
Most people hear "concentrated portfolio" and immediately think "dangerous." And honestly, they aren't entirely wrong. When you only hold 40 stocks, if one of your top five holdings—say, Amazon or Broadcom—has a terrible quarter, there aren’t 400 other stocks to hide behind. The impact is immediate. You feel it in the NAV (Net Asset Value) the next morning.
But there is a flip side.
By narrowing the focus, managers Nick Schommer and Brian Recht aren't forced to buy their 100th favorite idea just to fill a quota. They only buy the stuff they really, truly believe in. As of early 2026, the fund remains heavily tilted toward what they call "wide-moat" companies. We're talking about businesses with competitive advantages so strong that rivals find it nearly impossible to chip away at their market share.
Think about it this way. If you’re a world-class scout, do you want to be judged on your top 40 prospects or your top 400? Most experts would take the 40. That's the logic here.
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What's Actually Inside the JFRDX Engine?
People often mistake the Janus Henderson Forty Fund for a "tech fund." It’s easy to see why. When you look at the top holdings, you see names like NVIDIA, Microsoft, and Alphabet. But it’s technically a "Large-Cap Growth" fund. It just so happens that in the current economy, growth is largely driven by the application layer of AI and massive infrastructure spending.
Current Top 10 Snapshot (Approximate Weights)
- NVIDIA Corp: ~10.9%
- Microsoft Corp: ~10.3%
- Amazon.com Inc: ~8.4%
- Broadcom Inc: ~7.4%
- Apple Inc: ~5.7%
- Alphabet Inc: ~5.2%
- Taiwan Semiconductor (TSMC): ~4.3%
- Eli Lilly & Co: ~3.9%
- Oracle Corp: ~3.8%
- Mastercard Inc: ~3.1%
Wait, did you see Eli Lilly in there? That’s the nuance people miss. The fund isn't just buying chips and software. They’ve leaned heavily into healthcare innovation, specifically the pharmaceutical giants riding the wave of metabolic health and GLP-1 breakthroughs. It’s about secular trends—long-term shifts that don't care about what the Fed does in a single Tuesday meeting.
The "Class D" Confusion
The "Class D" part of the name—ticker JFRDX—is where things get a little technical, but it matters for your wallet.
Back in the day, Janus had a complex web of share classes. Class D was special because it was originally designed for people who bought directly through Janus. For a while, it was actually closed to new investors. Then, in July 2020, they opened the doors again.
Why should you care? Fees.
The expense ratio for Class D sits around 0.79%. In the age of 0.03% Vanguard ETFs, that might look expensive. But compared to other actively managed large-cap growth funds, it’s actually fairly competitive. You're paying for the "active" part—the fact that humans are sitting in a room deciding that Meta should be 2% of the fund while Microsoft should be 10%.
Performance vs. The Benchmark
Let's talk turkey. JFRDX benchmarks itself against the Russell 1000 Growth Index.
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In years where a few "Magnificent Seven" stocks lead the entire market, the Forty Fund usually looks like a genius. Because it’s concentrated, it can overweight those winners and beat the index. However, when the market "broadens out"—meaning smaller companies start to do well and the big tech giants lag—this fund can underperform.
As of late 2025 and heading into 2026, the fund has shown solid resilience. It returned roughly 20.58% over the one-year period ending in late 2025. Is that good? Well, it depends on who you ask. It’s better than the S&P 500's ~17.6% in that same timeframe, but slightly trailed the pure Russell 1000 Growth Index, which was closer to 25%.
This is the "active management tax." You’re betting that over a 5-to-10-year cycle, the stock-picking prowess of the managers will eventually pull ahead of the raw index.
The 2026 Outlook: AI and Reshoring
The management team recently signaled they are looking beyond just "AI infrastructure" (the guys making the chips) and moving into the "application layer." They’re looking for companies that are actually using AI to make more money, not just spending money on it.
They’ve also mentioned "reshoring"—the trend of bringing manufacturing back to the U.S. This is why you see companies like Eaton Corp or Howmet Aerospace popping up in the tail end of the portfolio. It’s a play on domestic manufacturing and the massive electrical grid upgrades needed to power all those new data centers.
Is It Right for You?
Honestly, it depends on what else you own. If your entire 401(k) is already in a "Growth" index fund, adding JFRDX is basically just doubling down on the same 30 stocks. You’ll have massive overlap.
But if you have a core "Value" portfolio or a lot of cash, and you want a high-octane "satellite" holding to capture the biggest winners in the U.S. economy, this is a legitimate contender.
Actionable Next Steps
- Check your overlap: Before buying JFRDX, look at your current holdings. If you own a lot of QQQ (Nasdaq 100), you already own most of what’s in the Forty Fund.
- Verify the minimums: Class D shares usually require a $2,500 initial investment (or $1,000 for an IRA). Make sure you aren't tied up in a share class with higher fees.
- Watch the turnover: The fund has a turnover rate of about 33%. This means they replace about a third of the portfolio every year. If you hold this in a taxable brokerage account, be prepared for some capital gains distributions at year-end.
- Consider the "N" Class: If you’re a big-time investor or using a specific platform, check if JFRNX (Class N) is available. It sometimes has a lower net expense ratio (around 0.52%) if you meet the criteria.
The Janus Henderson Forty Fund Class D isn't a "set it and forget it" index fund. It’s a specific bet on the 40 best ideas from one of the most established growth teams in the business. Just make sure you’re comfortable with the swings that come with putting so many eggs in so few baskets.