The fund was established in 1996 by Hideo Shiozumi, who continues to manage the fund today. He has over 47 years investment experience within Japan. The fund has a great track record so meeting Hideo was a chance to understand his process and what he invests in. Hideo also indicated that he wants to continue running the fund for at least another 3 years which would be 50 years’ experience and beyond that he cannot say. With that in mind, it would be necessary to understand the succession planning for the fund which wasn’t something we covered.
Hideo started by explaining that this is a high conviction growth fund focusing on new Japan. The fund is not driven by large exporters which are sensitive to currency, and tend to be more about ‘old Japan’. He likes to find companies that are in early stages of development and then hold them. Many holdings have been kept for 7 or 8 years, and some for much longer. His view is that patience will deliver the long-term returns. The top ten represents just over 50% of the fund….read more