Investment
service
Equity: Long / Long Short
Bottom-Up & Top-Down Approach
Fund Manager
Equity Investment Management
Koki Okahashi
Investment Philosophy
The Fund regards miss-pricing as investment opportunities that are frequent with Mid/Small-cap stocks, and deploys investment process which combines "Bottom-Up Approach (Corporate Analysis)" and "Top-Down Approach (Market Analysis)" that are considered reminiscent of the two sides of a coin. With the investment strategy, which should evolve all times, the Fund intends to transform price fluctuations (risk) to excess returns (alpha).
Investment Process
For its long/short investment strategy, in the case of Japanese equity, the Fund chooses a total of 400 companies (the 300 highest cap and 100 Mid/Small-cap) as the maintenance universe from an investment universe comprising 1,500 highly liquid stocks in listed companies. The Fund then selects stocks from the maintenance universe by estimating the deviation of stock prices from the intrinsic value of the company based on a bottom-up approach (fundamentals and technical analysis), and determines portfolio exposure (net/gross) and allocation (market cap, sector, factor) based on a top-down approach. In terms of risk management, the fund focuses on ensuring liquidity, limiting volatility, and avoiding unintended bets.
Investment Strategy
Long:
Highly Selective Japan Mid/Small-cap Equity Fund
(Inception day: September 1, 2011)
The Fund pursues mid- to long-term absolute returns. While investing in highly selective 15-20 Mid/Small-cap stocks with bottom-up research, the Fund hedges the downside risk with flexible control of cash position and equity exposure depending on the market environment by top-down research.
In April 2017, this Fund was rewarded by financial magazine J-Money a first-place in both the One-Year Japanese Equity/Small Cap- and Five-Year Japanese Equity/Small-Cap categories of the J-Money Fund Awards 2016.
With portfolio asset size reaching the preset target, the said investment trust was in principle, closed (not being offered to new investors) at the end of March 2017.
Long/Short:
New Alphex Long Short Fund
(Inception day: July 1, 2010)
The Fund pursues solid and stable absolute returns. On the long side, the Fund mainly invests in Mid/Small-cap stocks while on the short side, the Fund constructs portfolio mostly with large-cap stocks.