Over 25% Performance over First Half of 2019
The Hague – July 2019 – The Juno Selection Fund has ended the second quarter of 2019 with a positive result of 2.8%. The value of a participation in the Juno Selection Fund has achieved a level of €386.66 as of June 30, 2019, an increase of 25.4% since the beginning of the year.
Since its inception in January 2008, the fund has now generated a CAGR of +12.5% per annum (total return + 287%). The Juno Selection Fund demonstrates a clear outperformance compared to the market in general. Since January 2008, the Dutch AEX, dividends reinvested, has achieved a CAGR of +4.6% per annum. The EMIX Smaller Europe Index increased by +5.7% per annum over the same period.
Our investment style is based on a highly concentrated portfolio of European (family-owned) companies, combined with a proven and rigorously applied valuation methodology. For years in a row, the group of companies selected by Juno show an annual earnings growth of 10-15% in aggregate. This earnings growth has been the driver behind the attractive share price performance we have achieved.
Frans Jurgens, director and co-founder of Juno: “The current negative interest rate on European bonds should have led to astronomical price-earnings ratios for equities, if the historical inverse correlation between these two would be our guiding light. Instead, within the stock market we are increasingly seeing two extremes: good, but more cyclical companies with less predictable earnings growth that are trading at, what appear to be very attractive price-earnings ratios. On the other hand the proven, predictable growers, which are often trading at very high multiples, sometimes too high.”
Lennart Smits, director and co-founder of Juno: “It remains of great importance that we continue to apply our strict discipline in the valuation of our companies. Future earnings growth is essential, but not paying too much for that future earnings stream is probably just as important. Even though we have reduced some positions due to too high valuations, we still have enough attractively priced, annually growing companies in the portfolio. Companies that we expect to continue to be able to increase their earnings by 10% to 15% annually. We therefore look to the future with great confidence.”
Currently, the five largest holdings in the Juno Selection Fund are: SimCorp, Grenke, Technogym, Paradox and CTS Eventim.
About the Juno Selection Fund and Juno Investment Partners
The Juno Selection Fund invests in extraordinary European small- and mid-cap companies with an initial market cap between 250 million and 4 billion Euro. These are often family-owned companies or businesses that have a family or management as one of its main shareholders. Companies that can continue to achieve predictable and stable profit growth, year after year, are considered for investment. During this selection process, the emphasis lies on return on invested capital and free cash flows that are highly predictable in nature. Our analysts / asset managers put together a highly concentrated portfolio of companies that they themselves have identified, analysed and visit frequently. These companies often remain in the portfolio for a long period of time (on average more than three years). With this investment style, Juno has achieved consistent superior investment results for its clients during the past years.
The Juno Selection Fund is managed by Juno Investment Partners. Juno Investment Partners has an AIFM licence (as referred to in article 2:65 Wft), granted by the Dutch Financial Markets Authority (“AFM”).
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