Juno Continuation Fund: Q2 2020
New Juno fund stands firm in stock market turbulence
Positive return for Juno Continuation Fund after first five months
- Manager doubts strong economic recovery and continues to focus on predictable companies
- Benchmark index significantly outperformed
- Tumultuous first five months ended with positive performance of +0.6%
The Hague – July 2020 – The Juno Continuation Fund achieved a positive return of +14.6% in the second quarter. This brings the performance to +0.6% since the fund’s launch on February 1st. A remarkable result, as the main benchmark of the fund, the index of European medium-sized companies MSCI Europe Midcap Index (net), showed a negative return of -12.0% over the same period. The Netherlands AEX index, with dividends reinvested, decreased by -4.4% since February 1st.
With the Juno Continuation Fund, Juno Investment Partners continues the success of its first fund, the Juno Selection Fund. This proves that the strategy of strict selection of successful European (family-owned) companies with predictable earnings growth and high returns on capital is also bearing fruit in the segment of medium-sized European companies. While the Juno Selection Fund selects companies with a market capitalization of between € 250 million and € 4 billion, the new Juno Continuation Fund focuses on the segment just above: from € 4 billion to € 20 billion market value.
“A crisis often also brings extra opportunities for the strongest players.”
Rob Deneke, director and co-manager of the Juno Continuation Fund: “For the time being, we do not share the confidence for a rapid and broad-based economic recovery that is currently prevailing in the financial markets. Our preference remains for companies that do not depend on this recovery but that develop predictably and independently amidst the tumult. To that end, we also prefer companies with little or no debt. A crisis often also brings extra opportunities for the strongest players “.
During the past quarter, assets under management in the Juno Continuation Fund increased, thanks to both existing and new participants who joined. Frans Jurgens, director and co-founder of Juno Investment Partners: “We greatly appreciate the confidence that our clients appear to have in Juno’s strategy. They understand the added value of the stringent analysis preceding the inclusion in the Fund’s portfolio. Especially now, it is important to know the companies through and through and to have a reliable picture of where the company can be in five years’ time.”
The quarterly reports can be found here and the most recent fact sheet here.
About Juno Investment Partners
Since 2007, Juno Investment Partners has been investing in a highly concentrated portfolio of European listed companies with predictable and stable earnings growth, often family-owned businesses.
We focus on companies with a high return on invested capital, strong margins, and highly predictable (free) cash flows. These are typically companies with a strong competitive position and clear added value for their clients, enabling them to continue creating value over the long term.
Based on these characteristics, we select a limited number of companies that we want to understand thoroughly. The portfolio consists of approximately fifteen companies. These are analyzed intensively, visited regularly, and monitored over several years. The investment horizon is long, typically well over five years. Our analysts and portfolio managers also invest in the funds themselves.
Juno offers three products. The Juno Selection Fund focuses on small and medium-sized companies. The Juno Continuation Fund focuses on medium-sized companies. In addition, Juno offers individual asset management via managed accounts, using the same investment approach. The Juno Selection Fund was launched in 2008 and invests in European companies with an initial market capitalization between €250 million and €4 billion. The fund was closed to new investments for a long time and has been accessible to existing participants again since April 2023.
The Juno Continuation Fund was launched on February 1, 2020, and invests in medium-sized companies with a market capitalization between €4 and €20 billion. Here, too, the emphasis is on companies that often have family or management as co-shareholders.
Juno holds an AIFM license from the AFM.
