Jupiter European Opps - JEO

Sue58

I was thinking it may be a good time to invest a little money into JEO as the share price is quite low and it’s trading at a discount? I know there are reservations about Wirecard being the largest holding at 17%, but Alex Darwall is a very experienced fund manager that works on a performance fee so you would think he would have done his homework on Wirecard?

Anybody else tempted to invest at this time?

Herbalus

Sue58 wrote: »

IAlex Darwall is a very experienced fund manager that works on a performance fee so you would think he would have done his homework on Wirecard?

I don't know anything about Alex Darwall or Wirecard, but I think the idea that somebody has made the right bet because they're paid a performance fee is a flawed concept.

He may be incentivised to do well, and may be totally convicted that he's pursuing the right course, but that may bear no relation to whether he's right or not!

Sue58

Herbalus wrote: »

I don't know anything about Alex Darwall or Wirecard, but I think the idea that somebody has made the right bet because they're paid a performance fee is a flawed concept.

He may be incentivised to do well, and may be totally convicted that he's pursuing the right course, but that may bear no relation to whether he's right or not!

Although his very long term track record speaks for itself.

AnotherJoe

I'd be concerned if I held a fund where nearly a fifth its value was in one company.

A quick look at Wirecard also shows some immediate issues - offices being raided, share price "plummeting" etc. So I'd hold back a while before buying even if you fancied it.

And yes, I concur with other posters, how someone is paid clearly has zero relevance to their being correct about something.

Sue58 wrote: »

Although his very long term track record speaks for itself.

So did Neil Woodfords's until recently.

aroominyork

If you don’t have too many concerns about Wirecard - and who really knows how it will play out - then I agree the discount looks attractive. But would I sell my Jupiter European OEIC to buy the IT? No.

masonic

I've been a long term holder of JEO and am happy to continue to hold. Despite the specific problems with Wirecard, it hasn't fallen enough to trigger a rebalance, and I'm not seeing a need to buy more at this time. It certainly could have further to fall.

Aminatidi

Alexander Darwall has a huge amount of his own money in JEO.

The issues with Wirecard are "interesting" but if you take any kind of positive from a fund manager having a large amount of money in the product they are managing and selling you, it's there with JEO.

StellaN

aroominyork wrote: »

If you don’t have too many concerns about Wirecard - and who really knows how it will play out - then I agree the discount looks attractive. But would I sell my Jupiter European OEIC to buy the IT? No.

It’s interesting that high profile fund managers such as Alex Darwall and Nick Train tend to invest their own money in the equivalent version of the IT in preference to the OEIC. For example Nick Train invests in Finsbury Growth & Income IT rather than the Lindsey Train UK Equity OEIC.

aroominyork

StellaN wrote: »

It’s interesting that high profile fund managers such as Alex Darwall and Nick Train tend to invest in the equivalent version of the IT in preference to the OEIC. For example Nick Train invests in Finsbury Growth & Income IT rather than the Lindsey Train UK Equity OEIC.

Presumably because it gives them access to some of the more illiquid holdings which cannot sit in an open ended fund.

masonic

StellaN wrote: »

It’s interesting that high profile fund managers such as Alex Darwall and Nick Train tend to invest their own money in the equivalent version of the IT in preference to the OEIC. For example Nick Train invests in Finsbury Growth & Income IT rather than the Lindsey Train UK Equity OEIC.

Interestingly, so do I on both counts. The reason I do it is because the ITs seem to be higher active share and I can dilute them with a cheap tracker.

aroominyork

Charting the OEIC against the IT over ten years is interesting. The OEIC shows 5 year/10 year gains of 78.2%/325.1%, while the IT is 60.5%/535.5%. So from 2009 to 2014 the IT was streets ahead - something like 280% to 135% - while from 2014 to 2019 the OEIC performed better. Does anyone know the reason?