Juno Selection Fund: Q3 2010 performance

PRESS RELEASE: Juno Selection Fund decreases 0.8% during first nine months.
The investment fund managed by Juno Investment Partners, the Juno Selection Fund, posted a slightly negative performance over the past nine months, with the net asset value decreasing 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 and third. In the month of July in particular, stock market indices rose sharply and we were unable to match this increase. In the period under review there was evidence of some sector rotation in the markets, which caused our predictable, steadily growing companies to be less popular than banking and cyclical sectors. This was the main cause of the relative underperformance in the period. The total result this year, after nine months, is that we are on par with the Dutch AEX Index, but that we have dropped behind the HSBC Smaller Europe Index, which rose by 9.7% this year.

With our outperformance of the HSBC Smaller Europe Index of 27%, and an outperformance of an impressive 62% over the AEX Index since the inception of the Juno Selection Fund, it is only normal that we occasionally have to stand by, and have the market outperform us. There is no avoiding the fact that our investment style will, at times, be less popular. However, this only enforces our strong believe and determination in maintaining an investment style that focuses on high returns on capital, free cashflows, a solid balance sheet and a highly predictable growth in earnings. In 2010 we see a positive development in the underlying results of our portfolio companies, entirely in line with our expectations. Given the nearly unchanged level of the net asset value of the Juno Selection Fund in 2010, this underlying earnings growth has in fact resulted in the Fund being approximately 15% cheaper than at the end of 2009.

The portfolio of the Juno Selection Fund is made up of ten positions, spread across several European countries. One company that used to be in our top five holdings was removed from that list in the thisrd quarter. This was a result of our worries and doubts about the company’s growth in both the short and mid-term. We were not able to get comfortable with the situation and opted to sell our holding entirely. One new (Belgian) company was added to the portfolio in the period. 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. Given this predictable growth, high excess free cashflows, impressive return on capital and excellent management, the current share prices materially underestimate the underlying value. As a result Juno believes we can look forward to the remainder of the year, 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), or by e-mail (

Juno Investment Partners
‘Villa Maarheeze’
Rijksstraatweg 675
NL-2245 CB, Wassenaar
The Netherlands
tel:   +31.(0)
fax:  +31.(0)