Amid a tough banking environment over the past few years, many Japanese banks streamlined their operations to achieve record profits. In addition, they are poised to increase their profitability due to potential rate increases. Mitsubishi UFJ Financial Group looks particularly attractive in today’s environment.
Japanese equities are currently trading at compelling valuation levels compared to other developed equity markets around the world and relative to their own historical averages. We believe the Japanese market deserves a closer look.
When investing in Japanese businesses, we believe it is imperative to select a manager who is immersed in the culture and can perform in-depth, company-specific research to build a concentrated portfolio of Japanese companies that can outperform a benchmark and weather volatility.
Chief Investment Officer, Ryan Kelley, describes "market myopia" and the eight technology giants' effect on returns in 2023. He reinforces that time in the market and staying mindful of downside risk remains relevant and he believes the outlook for U.S. stocks remains positive.
For the ninth year, our seasoned portfolio management team gathered to share their insightful market and economic perspectives.
There has been renewed interest in Japan following Berkshire Hathaway’s increased investment in Japanese companies this year. The Portfolio Managers of the Hennessy Japan Fund highlight the main factors attracting investors and potential beneficiaries of continued economic growth in Japan.
Ryan Kelley, CIO of Hennessy Funds, gives his thoughts and outlook on current issues in the market. He continues to have a positive long term view.
As a global conglomerate that operates businesses in various industries, Mitsubishi Corporation is Japan’s largest “sogo shosha,” uniquely Japanese trading companies.
Japan’s stock market has been one of the world’s best performing in 2023. In this Portfolio Perspective, the Portfolio Managers discuss potential catalysts for the market, Japan’s economic “sweet spot,” and Berkshire Hathaway’s increased investment in Japan.
Berkshire Hathaway has increased its investment in five Japanese trading companies, Mitsubishi Corp., Mitsui & Co., Sumitomo Corp., Itochu Corp., and Marubeni, with investors taking notice. With Buffett strengthening his focus on Japan, we believe investors should as well.