We believe the Japanese market is not fully efficient and that active management based on fundamental research will add value.
The portfolio management team aims to select fundamentally attractive companies through intensive bottom-up research focusing on high return on equity (ROE) and competitive positioning in the relevant industry.
Our investment objective is to construct a concentrated portfolio of our best ideas, aiming to capture stock appreciation combined with the long term sustainable growth of shareholders’ equity.
Our concentrated and unconstrained approach is:
Invest in fundamentally attractive companies that can sustain high ROE over the long term
Build a concentrated portfolio of approx. 30 stocks based on the above criteria
Sell-side research providers have scaled back their coverage of Japanese stocks over the years, leaving this market under-researched and isolated in global investment terms. Nevertheless, many attractive Japanese companies have maintained outstanding competitiveness in both the global and domestic markets. Our unconstrained strategy, which concentrates on investment in stocks with sustainable high ROE and a competitive edge, aims to take full advantage of the unique opportunities available in this market.
The Nomura Japan High Conviction strategy is available for investment via our Dublin-based Irish domiciled UCITS fund.