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.
Portfolio Manager Tad Fujimura shares his insights on Japan’s economic recovery, small-cap valuations, attractive sectors, and notable additions and deletions from the portfolio.
As factory automation systems appear in factories throughout the world, Japanese companies are slated to be major beneficiaries - both as producers and users of robotics.
The market showed strength and resilience in 2020, hitting all-time record highs in December. With promising vaccines, historically low interest rates, and strong fundamentals, there is optimism for equities in 2021.
Berkshire Hathaway’s recent acquisition of more than 5% in five of Japan’s most esteemed corporations—Mitsubishi Corp., Mitsui & Co., Sumitomo Corp., Itochu Corp., and Marubeni—has sent a resounding signal that Japan’s valuations are compelling, potentially bolstering investor sentiment about investing in Japan.
Masa Takeda and Tad Fujimura of Tokyo-based SPARX Asset Management Co., Ltd., subadvisor to the Hennessy Japan and Japan Small Cap Funds, summarize the economic impact of COVID-19 as well as the government’s response. They also discuss the economic impact of a 2021 Olympics and SPARX’s informational advantage.
Tokyo-based SPARX Asset Management Co., sub-advisor to the Hennessy Japan Funds, shares insights on the impact of COVID-19 on the Japanese market.
Chief Investment Officer Neil Hennessy reviews current market fundamentals and shares his outlook for the coming year. He provides observations and insights on why he believes this extended bull market still has plenty of room to run.
Portfolio Manager Tad Fujimura provides insights on how smaller or more domestically focused Japanese companies have been affected by the trade discussions, the sales tax increase, increased tourism, and corporate governance.