The Portfolio Managers of the Hennessy Japan Small Cap Fund discuss the portfolio, their positive outlook on smaller Japanese stocks, and how they believe the recovery of the domestic economy will benefit small and mid-cap stocks.
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.
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.
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.
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 Tad Fujimura discusses the effects of the Russian war in Ukraine on Japanese companies, how the Fund is positioned, notable changes in the portfolio, and a few holdings he believes are trading at a discount with attractive growth prospects.
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.
Many current catalysts drive our positive outlook on Japan: Pandemic-related restrictions have been easing, Kishidanomics is underway, and valuations look attractive.