Fund Manager - Yasuo Sakuma
Value is to be created by a company, not by the market. Firms with sufficient scale and with past and present superiority do not necessarily have high investment value. Rather, investment opportunities lie in dynamic changes that may occur in the future and in the potential for value creation.
The fund conducts active idea-driven management based on independently constructed scenarios, without limiting the potential investment universe. The stock selection perspectives emphasize (1) the potential to become a next-generation leading firm in growth markets, (2) comparative advantages versus other firms in the same industry and how long those advantages will continue, and (3) turnaround potential during periods when business performance declines. The fund manager and the analysts work flexibly together in investigating, analyzing and evaluating target firms, so the fund manager can selectively invest in specific issues with high conviction.
| Long-Only: Japanese Equity Active Plus Fund  |
The Fund pursues absolute returns with the premise that the equity market makes mid- to long-term gains. Its portfolio combines an "active strategy" that accumulate returns in short- to mid-term, and a "buy and hold strategy" for long-term returns. Also, with its "cash strategy," it flexibly manages the equity weighting in order to moderate the portfolio's downside risks. |
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| Long/Short: Bayview Japan Equity Long Short Fund  |
The Fund pursues solid and stable absolute returns. On the long side, the portfolio combines an "active strategy" for the short- to mid-term returns and a "buy & hold strategy" for long-term returns. On the short side, it has two strategies; a "hedging strategy," a hedge against the market as a whole and individual issues, and an "opportunistic short strategy," where the source of returns is from individual stocks when short- to mid-term price declines are seen. (Hedging against individual short stocks by the long book is also possible.) |
Fund Manager - Ichiro Takamatsu
The Fund regards miss-pricing as investment opportunities that are frequent with mid/small-cap stocks, and deploys investment process which combines "Bottom-Up Approach (Corporate Analysis)" and "Top-Down Approach (Market Analysis)" that are considered reminiscent of the two sides of a coin. With the investment strategy, which should evolve all times, the Fund intends to transform price fluctuations (risk) to excess returns (alpha).
The Fund chooses and monitors 400 companies (out of 1,200 listed stocks screened for their liquidity) as the maintenance universe. The universe consists of 100 mid/small-cap companies as well as largest 300 companies in terms of market cap. The Fund, then, selects stocks from the maintenance universe by estimating deviation of stock prices from intrinsic value of the company based on the bottom-up approach (fundamentals and technical analysis), and determines portfolio exposure (net/gross) and allocation (market cap/sector) based on the top-down approach. In terms of risk management, the fund focuses on securing liquidity, holding down volatility, and excluding unintended bets.
The Fund pursues solid and stable absolute returns. On the long side, the Fund mainly invests in mid/small-cap stocks while on the short side, the Fund constructs portfolio mostly with large-cap stocks. Also, the Fund seeks to capture additional return sources by opportunistically investing in Asian technology stocks (Korea, Taiwan) that have low correlation to Japanese Equity.
