Our Japan Equity team is strong and very experienced with an excellent track record of navigating Japan’s equity universe for over 17 years. Our significant scale of operations in Asia allows the team tier 1 access to management and an ability to leverage counterparty relationships in terms of analysis and effecting transactions.
A robust and centralised team framework allows our managers to maximise challenge and debate. These factors are vital to executing our strategy and delivering repeatable performance to investors. We are patient. Rather than follow the herd and be influenced by behavioural biases, we adopt a longer-term mindset that allows us to focus on the best stock opportunities.
Our investment philosophy
We believe that:
Prices frequently move more than is justified due to shifts in investors’ risk perceptions.
Behavioural biases influence both investor expectations and risk appetites.
As a result, the actual underlying value is not always reflected in stock prices. By detaching ourselves emotionally and with rigorous analysis and discipline over a longer time frame, we can exploit these opportunities.
Our investment process
Our bottom-up, valuation-driven investment process has been designed to target mispriced equities in a disciplined and repeatable manner. It consists of four stages:
Idea generation: We systematically look for mispriced assets that impact portfolio returns the most.
Fundamental analysis: This is the most important part of the investment process. It allows us to confirm whether value exists. It also helps us deepen our understanding and tests the team’s conviction in a particular holding.
Portfolio construction: We construct the portfolio with our highest conviction ideas while considering stock correlations and unintended risks. Stocks from this conviction list become the core positions in our Japan Dynamic strategy.
Risk control and review: Ongoing portfolio review helps instil process integrity and sell discipline. Our robust risk framework is conducted by the Japan Dynamic team, senior management, and our independent risk oversight team.
For more information on how to invest in these strategies, contact us here.
