Marshall Wace, which is among the ten largest hedge funds across Europe with $10.7 billion in assets under management, is doubling down on Japan. The London based hedge fund applies a long/short strategy across several of its funds. Marshall Wace has dozens of shorts disclosed in European countries as well that we have covered from time to time.
The hedge fund founded by Paul Marshall and Ian Wace, is shorting several companies in Japan. Marshall Wace has a short in Juki Corp (TYO:6440), a manufacturer of sewing machines and other industrial equipment. Marshall Wace's Eureka Fund is holding 0.4% of Juki Corp (TYO:6440)'s shares short. The threshold for disclosure of short position in Japan is 0.25% of outstanding shares, as opposed to the 0.5% limit enacted by European Securities and Markets Authority (ESMA).
Marshall Wace doubling down on Japan
The company's mid year guidance released in May forecasted a revenue at ¥47,00 million, operating profit at ¥1,700 million, net loss of ¥800 million and earning loss per share at ¥6.19 for FY2013. Juki also cancelled its mid-year dividend for this year. Juki closed down 4.5% in Tokyo today, shares have gained 20% YTD. Nomura International also has a 1.1% short in Juki Corp.
The other company that Marshall Wace is betting against is Mito Securities Co Ltd (TYO:8622). As the name indicates, the company provides secure solutions and deals in marketable securities. Marshall Wace had a 0.33% short in the company as of July 22.
According to a November 2012 filing, Nomura Research Institute has a 7.5% long position in Mito Securities Co Ltd (TYO:8622).
Other Marshall Wace shorts
Other shorts from Marshall Wace include a 0.3% short in NICHII GAKKAN COMPANY (TYO:9792), a nursing care company and a 0.35% short in OIZUMI Corporation (TYO:6428), which provides automation services and also has real estate business. Marshall Wace also had bets against AltPlus Inc (TYO:3672) and TOKYO ROPE MFG. CO., LTD. (TYO:5981) which it has covered to below threshold level.
Marshall Wace has done reasonably well in its long/short funds, the flagship MW Eureka Fund A1, with $3.6 billion, is up 14% through June of this year. MW Core, $1.3 billion, is only up 5.7% in the same period. Marshall Wace Global Opportunities with $1.1 billion has gained 11.9% through the first half.