We conduct due diligence on securities by analyzing annual statements, earnings, financial statements, and any IR notices that would provide clues to whether it matches our investment principles. Basing our method on Benjamin Graham’s value investing, we take our unique approach to find mispriced assets in the market. We also focus on relative value trades where two similar companies of close financial strengths are being valued very differently.
We focus on corporate events including M&A, restructurings, share buybacks, capital dilutions, and spinoffs to carefully evaluate whether the market has correctly priced in the value. When we have strong evidence that the value has not been 100% captured, we believe there is an opportunity.
We pride ourselves on the investments we choose and, as shareholders, we use our authority to help managers of the companies we own to make the right decisions. As managers work closely with equity owners, they are able to make better business judgement and maximize shareholder returns while contributing to the Japanese and global growth.
We invest in listed stocks in Japan. While foreign investors are the majority of the First Section of the Tokyo Stock Exchange, the number of foreign investors is still small in the Second Section of the Tokyo Stock Exchange and below. We can find undervalued stocks by conducting research mainly on companies with small market capitalization that are not covered by foreign capital.
While investing in listed stocks, we also invest in unlisted stocks. We pursue profitability and stability by gaining control of a company and provide investors with a value different from investing in listed stocks.
We invest not only in Japan but also in overseas stock markets. We select markets from a unique perspective that ordinary institutional investors do not have, and actively enter emerging markets. We continue to research and propose the best investment targets to increase the value of investors’ property, using creativity without being bound by existing concepts.