Glenn Gawronski and Don San Jose, investment managers of JPMorgan US Smaller Companies Investment Trust, like US consumer products producer Jarden Corporation. The company is the largest share holding in the investment trust's portfolio, accounting for 3.3 per cent of assets at the end of July.
Jarden Corporation was one of the main performance contributors for JPMorgan US Smaller Companies Investment Trust over the first half of this year. The investment trust's total return on net assets was up 8 per cent, representing roughly 60 basis points of outperformance relative to its benchmark, the Russell 2000 Index. The outperformance was primarily due to superior stock selection in the consumer discretionary sector, in which Jarden is categorised, and materials & processing.
"Jarden, which provides a broad range of consumer products, contributed positively with a return of 41 per cent in the period," explain Mr Gawronski and Mr San Jose. "The robust share appreciation reflects a shareholder friendly decision to complete a $435m tender offer for 12.3m of its common shares, or 13 per cent of outstanding shares. The tender price of $36 per share was 17 per cent above the closing price on the day prior to announcement of the offer."
Over the first half of this year, Jarden reported that organic net sales grew 3.3 per cent and adjusted diluted earnings per share rose about 22 per cent to $1.58, compared with $1.29 for the same period in 2011.
The company manufactures products in the following areas:
■ Branded consumables, which includes household staples such as safety items, plastic cutlery, matches and lighters;
■ Consumer solutions, such as coffee makers and bedding;
■ Outdoor solutions, examples being sports and camping gear; and
■ Process solutions, which includes medical disposables.
The company is quoted on the New York Stock Exchange.
