Value investing in Japan is a topic you would expect to see on a small blog or publication. However, one would not expect a paper like the FT to have a special report on the topic. The FT has a report not on value investing in Japan exactly, but the report is on Japan. Additionally valuation is discussed throughout this special report. Below are some select excerpts followed by the full document in scribd:
Valuations have come up a lot, note analysts, but the Nikkei 225 average is still trading below its 10-year average level, on a price/ book value basis.
Last year was a bumper year for hedge fund launches. According to a Hedge Fund Research report released towards the end of March, 614 new funds hit the market in 2021. That was the highest number of launches since 2017, when a record 735 new hedge funds were rolled out to investors. What’s interesting about Read More
And there are still bargains to be had. Many small-caps, for example, are still trading at tempting multiples. Mr Hickey singles out Nittoku Engineering of Saitama, a fast-growing, debt-free manufacturer of machines to wind coils. It has returns on equity almost twice as high as the broad Topix index, and yet trades at a discount in price/book terms.
The small-cap space could be happy hunting ground, agrees Takashi Fukuzaki, equity product specialist at BlackRock in Japan. While the value of the Topix index has halved in the past 10 years, he notes, more than 500 small- to mid-cap companies have doubled in price.
FT Report on Value Investing in Japan