Once we find a company we like, we assess it based on our proprietary research, company visits and our gathered knowledge about the industry. From discussions with management, but also with competitors and industry experts, we get a clear picture of the business. We determine how the company has been able to achieve above-average returns on capital and high margins. More importantly, we identify what is needed to maintain or further improve this excellent financial situation. We therefore invest mostly in companies that are market leaders or have protected their position through patents or rights. This helps to make their future a bit more predictable.
We want to be able to paint a picture of what the organization could look like in five years, where the money is earned and where investments are needed. Juno Investment Partners invests once we believe that we can own the business at a price level that clearly lies below the value that we have calculated. We want to be as sure as we can be that we will be amply compensated for the risks we take.
Juno Investment Partners has a very low turnover: a company remains in our portfolio on average for over three years. Even when we haven’t chosen to invest yet, we remain informed in order to be able to respond quickly once the situation changes and the price becomes more attractive. Considering the volatility in stock prices, with time, we always get a chance to buy at attractive levels.