When looking at foreign countries that most commonly comprise foreign funds, Japan has performed well while continuing to offer compelling valuations.
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.
Masa Takeda of Tokyo-based SPARX Asset Management Co., Ltd., subadvisor to the Hennessy Japan Fund, provides his thoughts on the impact of COVID-19 in Japan, Shinzo Abe’s resignation, Berkshire Hathaway’s purchase of five Japanese stocks, the Fund’s success in 2020, and compelling investment themes and stock valuations.
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.
While O’Reilly Automotive is a leader in the automotive aftermarket parts industry in the U.S., the company’s recent acquisition of Mexico-based Mayasa Auto Parts illustrates the company’s greater goals to expand its operations internationally.
Portfolio Managers Dave Ellison and Ryan Kelley provide their perspective on how banks are demonstrating resiliency in the face of low interest rates and the COVID-19 pandemic. They also discuss opportunities in large- and small-cap Financials.
Portfolio Managers of the Hennessy Focus Fund, David Rainey and Brian Macauley make the case for two top holdings.
Portfolio Manager Ben Cook, CFA, shares his insights on the current state of the energy market, discusses valuations and yields for midstream companies, and details the factors that set these companies apart.
The Hennessy Focus Fund Managers discuss a recently added position, how they currently evaluate “tail risk,” select holdings trading at exceptionally low valuations and O’Reilly Automotive’s expansion plans.
We encourage shareholders to maintain a long-term investment horizon and to remain focused on long term goals. As always, but especially in these trying times, we are here to support our shareholders, and we thank you for your continued investment and trust.