Investment Characteristics
The source of the added value that we bring to investment decisions stems from the thorough proprietary research conducted by the Small Cap Investment Team. The focus of fundamental research is on investment themes that reflect structural changes in the long-term growth of the Japanese economy. While we recognize the value of creative investment ideas, our structure does not rely excessively on the judgment or abilities of a single individual. Rather, investment decisions are based on an organizational decision-making process.
Investment Style
Growth at a Reasonable Price (GARP)
Investment Target, Sources of Excess Return
The Russell-Nomura Small Index is used as the benchmark. We aim to exceed this benchmark by at least 5% over the medium to long term. The sources of excess return are solely based on stock selection.
Investment Process
Taking a top-down approach, we look for industries that offer ample opportunities for growth that will benefit from structural changes in the Japanese economy, develop specific investment themes and incorporate research concentrated on industry and sub-sector information. At the same time, we employ a bottom-up approach using both fundamental and valuation analysis to invest in companies that we judge to be undervalued and to have strong cash flow potential.
Information on strategy risks and fees will open in a different window.
