15 Mar 2019 08:00
Jupiter European Opportunities: New research
15/03/19
· Jupiter European Opportunities (JEO) has reigned supreme across Europe for the past decade or so, in both consistency and extent of outperformance...
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Jupiter European Opportunities (JEO) typifies a fund run by an investor who takes a long-term view, and applies that view with high conviction. As a result of Alexander Darwall's stockpicking, JEO has reigned supreme for the past decade in both consistency and the extent of its outperformance - even despite the recent falls in the share price of the trust's largest holding Wirecard.
Since 2000, Alexander has invested JEO's capital in the same manner - by owning what he sees as exceptional companies, expected to grow thanks to long-term structural trends largely uncorrelated to the wider economic environment / stock market cycles. He expects to hold these companies for the long term, and has demonstrated that he runs winners. His low turnover and high conviction approach mean that currently there are four holdings within the portfolio (currently accounting for 24% of NAV by value) which have been part of the portfolio for twelve years.
Alexander has a high degree of flexibility to manage the portfolio as he sees fit. That he runs winners means that the portfolio concentration is much greater than one would normally find, with the top ten holdings representing 78% of NAV at the last month end. Additionally, he has full latitude to invest outside of European-listed companies, the requirement only being that most companies held will undertake a substantial proportion of their business activities within Europe. Currently c. 26% of assets are invested in UK-listed companies. By the managers' calculations less than half (45%) of the portfolio's companies' sales come from Europe.
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