Japan Long/Short strategy

The strategy aims to take advantage of pricing inefficiencies in Japan to generate long-term outperformance with managed volatility and downside protection.

THE OPPORTUNITY

With its foundations in manufacturing the Japanese economy can experience business cycles containing taller peaks and deeper troughs than other major economies. Our long/short investment approach is the perfect response to such market conditions seeking to participate in the upside, as the market grows while defending investor capital when markets turn negative.

Japan also represents a large and liquid opportunity set for skilled investors. With limited analyst coverage, and over 3,500 listed companies, there exists a range of pricing inefficiencies for our experienced team of Japanese equity investors to exploit.

INVESTMENT PHILOSOPHY

We believe a flexible approach to investing, employing a combination of top-down and bottom-up analysis, is the best response to volatile markets and to achieving our ultimate goal of capital appreciation. Identifying macro themes provides a strategic framework for portfolio construction, helps set the research agenda and enables the team to deploy their stock-picking skills in areas where they have highest conviction.

MARTIN CURRIE FOR JAPAN LONG/SHORT

  • Experienced and proven team with specialist Japanese equity experience
  • The same core process has been used since 2002*
  • Top down analysis sets the tone of the portfolio by driving balance sheet positioning
  • Fundamental process aims to generate returns from bottom-up stock selection
  • We aim to deliver a stable return profile with significantly less volatility than the market

* Paul Kirby ran Japan long/short portfolios between September 2002 and October 2012 and then from July 2014 to date.