Why value investing?
Historically low-multiple stocks tend to outperform the market
Compound return by PE decile (p.a.)
Buy good assets at low prices
Sharp focus on risk management
We think about mitigating the risk of a permanent loss of capital
Our approach in a nutshell
Truly active
High active share
Bottom up
Stock specific opportunities, not macro forecasting
Fundamental
Risk spread across business models, geographies, currency exposures and industries
Diversified
60-80 stocks ensures no company-specific shock can derail the portfolio
Conservative
Strong preference for family run businesses and low leverage
All cap
Ability to invest across the market cap spectrum, currently with a mid-cap bias
Strategy specific risks
- 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.
- 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.
- Derivative risk - the Strategy may use derivatives to reduce costs and/or the overall risk of the Strategy (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.
- Counterparty Default Risk - The risk of losses due to the default of a counterparty e.g. on a derivatives contract or a custodian that is safeguarding the Strategy's assets.
Important Information
This marketing communication is intended for investment professionals and is not for the use or benefit of other persons, including retail investors.
This communication 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. Initial charges are likely to have a greater proportionate effect on returns if investments are liquidated in the shorter term.
Past performance is no guide to the future. Company examples are for illustrative purposes only and are not a recommendation to buy or sell. Quoted yields are not a guide or guarantee for the expected level of distributions to be received. The yield may fluctuate significantly during times of extreme market and economic volatility. Awards and ratings should not be taken as a recommendation.
The views expressed are those of the author 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. Every effort is made to ensure the accuracy of the information provided but no assurance or warranties are given.
Issued by Jupiter Asset Management Limited, 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. For investors in Hong Kong: Issued by Jupiter Asset Management (Hong Kong) Limited (JAM HK) and has not been reviewed by the Securities and Futures Commission. No part of this document may be reproduced in any manner without the prior permission of JAM/JAMI/JAM HK.
*In Hong Kong, investment professionals refer to Professional Investors as defined under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong). In Singapore, institutional and accredited investors as defined in the Securities and Futures Act (Cap. 289) of Singapore.