Juno Continuation Fund: Q3 2020
Despite Corona, portfolio companies manage to maintain the trend of rising earnings and turnover
Juno Continuation Fund manages to maintain positive trend and records +7.8% performance this year
- Juno Continuation Fund achieves positive result in third quarter (7.1%).
- 2020 Return (since inception on February 1) now stands at 7.8%
- MSCI MidCap Index shows -7.8% over same time frame.
- Portfolio adjustment early in the year was prompted by desire for higher predictability.
- A weighted growth of at least 9% in the portfolio companies’ earnings is expected for the full year 2020.
DThe Hague – October 16, 2020
Rob Deneke, manager of the Juno Continuation Fund: “As a long-term investor, we have an eye for long-term trends. These, unlike short-term noise, often have a significant impact on industry and specific company developments. In addition to the long-term horizon, we value a high degree of predictability. With this predictability in mind, we looked at the impact of the corona pandemic at the beginning of this year and adjusted our portfolio where necessary. We had to part with some positions and others saw their portfolio weight increased. That seems to pay off. The companies in the portfolio again show a good development in turnover and earnings this year. ”
“There are still interesting companies to add to our portfolio, but we feel many are too expensive at the moment.”
Duncan Siewe, manager of the Juno Continuation Fund: “Companies with business models that function poorly in these corona times have disappeared from our portfolio. Although we prefer to make few changes to our portfolio, the enormous impact of the pandemic made this necessary. The remaining companies in the portfolio are developing well operationally and this is reflected in their share prices. We are currently holding a fairly large cash position of more than 20% out of caution and discipline. There are still interesting companies to add to our portfolio, but we feel many are too expensive at the moment. The cash position ensures that we can wait comfortably. Moreover, it is encouraging that the attractive performance to date has been achieved despite these high cash balances in the fund. ”
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.
