Achieve stable returns by making investment decisions not only based on fundamental analysis of individual firms, but also from fresh viewpoints by discerning stock market trends with the eyes of a bird (macro viewpoint), an insect (micro viewpoint), and a fish (trend viewpoint).
Investment Process
The fund conducts active idea-driven management based on independently constructed scenarios, without limiting the potential investment universe. The stock selection perspectives emphasize (1) the potential to become a next-generation leading firm in growth markets, (2) comparative advantages versus other firms in the same industry and how long those advantages will continue, and (3) turnaround potential during periods when business performance declines. The fund manager and the analysts work flexibly together in investigating, analyzing and evaluating target firms, so the fund manager can selectively invest in specific issues with high conviction.
Investment Strategy
Long/Short: Bayview Japan Equity Long Short Fund (Inception day: July 15, 2002)
The Fund pursues solid and stable absolute returns. On the long side, the portfolio combines an "active strategy" for the short- to mid-term returns and a "buy & hold strategy" for long-term returns. On the short side, it has two strategies; a "hedging strategy," a hedge against the market as a whole and individual issues, and an "opportunistic short strategy," where the source of returns is from individual stocks when short- to mid-term price declines are seen. (Hedging against individual short stocks by the long book is also possible.)
Since July 16th, 2013, a fund deploying the same strategy as Bayview Japan Equity Long Short Fund has become available for retail investors (under the same fund name). The fund is managed by BVAM as its first publicly offered investment trust, and is distributed by Mito Securities, etc.
Takato Tanikawa
Bayview Japan Equity Long Short Fund under bottom-up & top-down approach that incorporates investor behavior analysis
The eyes of a bird, an insect, and a fish
Takato Tanikawa first became interested in the financial industry when he was exposed to venture financing as a university student. As he learned how difficult it is for venture firms to raise fund in the course of researching the key elements for venture firms to succeed, he became interested in supporting the financing of start-up firms that would grow in the future, and so, he joined a domestic securities firm.
As a member of the firm's Japanese equity research and sales team, Tanikawa provided investment information and ideas on individual companies to investment management firms. During the five years of service, he realized that information provided by sell-side analysts are only extension of the past, and in many cases, already incorporated in stock prices. On the other hand, many fund managers he contacted captured changes in the stock market and companies speedily and conducted investment actions based on their own ideas, which fascinated him to buy-side investment management. A fund manager who had a big influence on this growing fascination was Sakuma of Bayview Asset Management.
Unlike fund managers of other companies, Sakuma would not listen to Tanikawa unless Tanikawa explained the stock issues he unearthed from the market with his own words, and even making an appointment was difficult at first. Sakuma, however, gradually started to listen to Tanikawa's explanations, which were backed by in-depth research and analysis. Sakuma said during a discussion with Tanikawa on a game related company "Without understanding the history of game development process, we cannot accurately judge the company's capital policy." Tanikawa was inspired by Sakuma's insights in the historical background of companies, which many market participants overlooked. This made Tanikawa want to work with Sakuma, and Tanikawa decided to join Bayview Asset Management in 2012. Tanikawa refined his ability to find promising individual stocks as an analyst under Sakuma and recommended stocks by newly incorporating investor behavior analysis, which Tanikawa found extremely important during his experience in the research and sales days. These bore fruit and Tanikawa became the co-fund manager of Bayview Japan Equity Long Short Fund in April 2016.
In the stock market today, investor behavior that has significant impacts on market movements changes every minute, such as that the trading turnover of leveraged ETF exceeding that of large-cap stock. Tanikawa starts taking on challenges as a fund manager, with the belief that when investing in stocks, good returns can be achieved only when investment decisions are made based on not only analysis of individual companies fundamentals, but also from fresh viewpoints that discern stock market trends, with the eyes of a bird (macro viewpoint), an insect (micro viewpoint) and a fish (trend viewpoint).
[Biography] Tanikawa joined Bayview Asset management Co., Ltd. in May 2012. He started his career at Shinko Securities in 2007 (current Mizuho Securities), where he was engaged in research and sales for institutional investors, mainly for Japanese investment firms, at the equity sales department and the institutional investor sales department. Tanikawa received his B.A. in business from Tokyo University of Science in 2007.
