Powered by local knowledge and insight, Alltus Japan Fund is optimised to take full advantage of Japan’s long-term structural trends.
Investment Process
Alltus Japan Fund is a Short and Long Absolute Return Hedge Fund.
Our objective is to produce capital growth through an actively managed, diverse portfolio over the long term, through investment in Japan. We invest in Japanese firms of varying sizes but favour long-term structural growth companies that have durable business models, high barriers to entry, good management and are reasonably priced.
Conducting in-depth, on-the-ground fundamental research is at the heart of Alltus Japan Fund’s approach. Up to the minute market analysis supported by almost unlimited access to all levels of management has allowed us to confidently buy companies that will grow in value over the long term, but are not yet appreciated by the rest of the market, especially foreigners.
Risk /Reward
Japan has historically always been a volatile market. Alltus Japan Fund invests in a number of smaller companies which increases risk, although this is mitigated by strong diversification and a deep understanding of Japanese macro-economic factors at play. This investment strategy has ensured consistent results, especially in challenging periods.
Alltus Japan Fund’s portfolio usually contains around 30-40 holdings which limit the impact of any one stock. The investment team seeks businesses that can deliver sustainable growth before other investors recognise their potential, which has helped us outperform major indices.
Our focus on companies is well aligned with Japan’s current economic and political climate, although patience is sometimes required to see these types of opportunities pay off. For the long-term investor, Alltus Japan Fund offers diversified Japanese exposure, with a management team who have the skill to accurately predict market trends over time.
Key Points
- Expertise - Highly-experienced, London, Singapore and Tokyo-based management team with exceptional access to local company management.
- Portfolio - Bottom-up stock selection is driven by on-the-ground knowledge.
- Success - Seeks targeted exposure to the companies benefiting from Japan’s long-term structural trends, while avoiding companies and sectors that face structural headwinds.
Fund Summary
With close proximity to, and a deep understanding of, the companies in which they invest, Alltus Japan Fund’s investment team searches for companies with a focus on long-term growth and improvement.
We favour businesses with sustainable growth, a durable competitive advantage, robust fundamentals and a credible management team.