- Industry economics and return analysis
- Competitive positioning
- Opportunities and risks from disruption
Flexible, style-agnostic, concentrated and highly active approach
- Experienced, longstanding investment team
- Seeking superior risk-adjusted returns: maximize information ratio via high idiosyncratic risk
- Seeking alpha generation via high idiosyncratic returns
- Offering unashamed accountability
Investment philosophy
We believe that companies which generate superior returns on capital employed and allocate capital intelligently will outperform over time
Select companies where Return on Capital Employed (ROCE) > cost of capital
Select companies that allocate capital intelligently
The most consistent method by which to achieve above average portfolio returns is to rely on the compounding effect of high return companies that allocate capital intelligently.
- Drive competition for fund capital
- Prioritise scalable positions
- Challenge stale prejudices
Why European equities?
Why is flexibility important in European equities?
Because in an era of higher volatility, there is no clear style edge between growth and value. Staying nimble is key.
Strategy risks
European Growth strategy
- Currency (FX) Risk – The strategy can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
- Share Class Hedging Risk - The share class hedging process can cause the value of investments to fall due to market movements, rebalancing considerations and, in extreme circumstances, default by the counterparty providing the hedging contract.
- Pricing Risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
- Market Concentration Risk (Geographical Region/Country) - Investing in a particular country or geographic region can cause the value of this investment to rise or fall more relative to investments whose focus is spread more globally in nature.
- Derivative risk - the strategy may use derivatives to reduce costs and/or the overall risk of the Fund (this is also known as Efficient Portfolio Management or "EPM"). Derivatives involve a level of risk, however, for EPM they should not increase the overall riskiness of the strategy.
- Liquidity Risk (general) - During difficult market conditions there may not be enough investors to buy and sell certain investments. This may have an impact on the value of the strategy.
- Counterparty Default Risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the strategy’s assets.
Important Information
Important Information: This is a marketing communication. This document is intended for investment professionals and is not for the use or benefit of other persons. This document is for informational purposes only and is not investment advice. Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. The views expressed are those of the individuals mentioned at the time of writing, are not necessarily those of Jupiter as a whole, and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. Company or holding examples are for illustrative purposes only and are not a recommendation to buy or sell. Every effort is made to ensure the accuracy of the information, but no assurance or warranties are given. Issued in the UK by Jupiter Asset Management Limited (JAM), registered address: The Zig Zag Building, 70 Victoria Street, London, SW1E 6SQ is authorised and regulated by the Financial Conduct Authority. Issued in the EU by Jupiter Asset Management International S.A. (JAMI), registered address: 5, Rue Heienhaff, Senningerberg L-1736, Luxembourg which is authorised and regulated by the Commission de Surveillance du Secteur Financier. No part of this document may be reproduced in any manner without the prior permission of JAM/JAMI.