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
Shintaro Harada has over 24 years of investment experience and has been managing Japanese equity portfolios for Nomura since 1993.
In March 2018 Shintaro Harada won Citywire’s “Best Fund Manager” award in their “Equity – Japan” category in Switzerland for his management of Nomura’s flagship Japan High Conviction Fund.
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.
Click here for our latest thoughts on the Japanese equity market, as first published in Citywire in May 2018.
The Nomura Japan High Conviction strategy is available for investment via our Dublin-based Irish domiciled UCITS fund.