A “growth in disguise” company is one with compelling growth prospects yet the stock appears to be undervalued. We believe these Japanese businesses provide outsized opportunity for investors in the current 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, summarizes a look back over a volatile 2022 and reinforces that time in the market can smooth out the choppy markets, and he believes the outlook for U.S. stocks remains positive.
Deep-rooted cultural traditions of hard work and perseverance have contributed to Japan’s high-quality products, superior manufacturing, and technological innovations, resulting in a durable global competitive advantage.
The Portfolio Managers share their views on the Japanese market, how the Fund is positioned to take advantage of “growth in disguise” companies, and why investors may want to consider Japanese equities for the long term.
Ryan Kelley, CIO of Hennessy Funds, provides his mid-year review and outlook on what lies ahead, emphasizing a long-term perspective.
Keyence is at the forefront of factory automation. For over 40 years, the company has developed customized sensors and measuring systems to enable customers worldwide to automate assembly lines, improve productivity and product quality, and ensure a safe working environment.
Portfolio Manager Masa Takeda discusses Japanese energy imports, inflation, interest rates, and valuations. He also talks about the effects on Japanese companies with regard to Russia and ongoing supply chain issues.
Portfolio Manager Masa Takeda discusses the new Prime Minister’s focus on growth, the effect of global supply chain issues and currency weakness on exporters, and how the Fund is currently positioned.