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
Juno Investment Partners is an independent asset manager based in The Hague. Juno invests in concentrated portfolios of high-quality European listed companies, often family-owned businesses or companies in which founders and directors are shareholders. The selection process emphasises predictable earnings growth, a high return on invested capital, low debt levels, strong margins and free cash flow, and a sustainable competitive advantage.
Launched in January 2008, the Juno Selection Fund focuses on small- and mid-cap European companies. The portfolio typically consists of around fifteen companies. Each is analysed intensively, and regular contact is maintained with management. The investment horizon is long, generally well over five years. Juno’s analysts, portfolio managers and employees also invest their personal capital in the JSF.
In addition to the JSF, Juno offers individually managed accounts through separate mandates, using the same investment approach. Juno holds an AIFM licence issued by the Dutch Authority for the Financial Markets (AFM).
