PRESS RELEASE: Juno Selection Fund rises 1% during 1st Half of 2010:
The investment fund managed by Juno Investment Partners, the Juno Selection Fund, posted a positive performance over the past six months, with the net asset value rising by 0.8%.
In the first three months of 2010 Juno managed to outperform the overall stock markets, but had to give up some of its lead in the second quarter. For the year 2010, Juno is on par with the HSBC Smaller Europe Index, and 6.3% ahead of the Dutch AEX index. Since inception, the Juno Selection Fund has outperformed the HSBC index in 21 out of 30 months, and is now 41% ahead of that index. Juno is 75% ahead of the AEX index.
The portfolio of the Juno Selection Fund is still made up of ten positions, spread across several European countries. The stocks in the portfolio have been reshuffled somewhat during the quarter, but the top 5 names are unchanged. All these companies are unique in terms of robustness and high predictability of their earnings. They use low levels of leverage and achieve very high returns on capital as well as significant free cashflows.
With share prices hardly changed from their December 2009 levels, our selection of 10 great small- and midcap European companies have grown cheaper. This is because their earnings have continued to increase, thereby reducing their P/E ratio’s. This concentrated portfolio of growing and very profitable companies was chosen for their ability to steadily grow through economic cycles. Even in the dramatic economic year of 2009, they managed to grow their earnings at 12% in aggregate. For 2010 we believe they are on track to deliver growth well in excess of 15%.
Given this predictable growth, high excess free cashflows, impressive return on capital and excellent management, the current share prices do not properly reflect underlying value. As a result Juno believes we can look forward to the second half of 2010, and indeed beyond, with a great deal of confidence.
About Juno Investment Partners
Juno invests in European Small-, and Midcap equities. The management team has worked in the investment management industry for many years, as both analysts and investors in European companies. They manage the Juno Selection Fund. This fund has an investment horizon of three to five years. The Juno Selection Fund is an open ended fund, organized under Dutch law as a “Fonds voor gemene rekening” or FCP. It trades monthly on intrinsic value, thereby offering its investors good liquidity. Both the fund and the manager are exempt from obtaining a license from the Dutch Financial regulator, AFM, as article 2:74 of the Dutch Wft Law applies. Investors can participate in the fund from an initial investment of € 100’000.
For questions or comments, please contact Frans Jurgens or Lennart Smits on:
+31 (0)70.24.00.247, or by e-mail (firstname.lastname@example.org).
Juno Investment Partners
NL-2245 CB, Wassenaar