Jupiter US Smaller Companies reports that its NAV per share fell 4.8% in the six month period to 31 December 2015, compared to a drop of 3.3% in the Company’s benchmark, the sterling-adjusted Russell 2000.
The worst performing sector in the six month period was energy, falling 41% as oil prices collapsed once again, after a rally in the first half of 2015. The materials and processing, and consumer discretionary sectors were also weak. Utilities were the only sector to rise (up 2%); the consumer staples and financials sectors were also relatively resilient.
There was good performance in particular from IPC Healthcare (a provider of specialist hospital physicians), Monarch Financial (a regional bank) and Civitas Solutions (the leading provider of community care for the intellectually disabled). The first two were the subject of agreed bids whereas Civitas delivered good profits growth.
As ever there were stocks that performed poorly and the worst contributors in the period were CAI International (a lessor of shipping containers), Sotheby’s (the auction house) and Pernix Therapeutics (an acquirer and marketer of niche pharmaceuticals).
The first was hit by concerns about global trade and a drop in the price of new containers; Sotheby’s suffered weak auction commissions and investors were concerned about the guarantees offered to secure the sale of the ex-Chairman’s collection; and Pernix fell after a disappointing relaunch of its migraine drug.
JUS : Jupiter US Smaller Companies reports slight underperformance