A unique partnership is set to launch a new Japanese equity fund in January, combining the financial expertise of a former Goldman Sachs analyst with the market savvy of a retail investor who once graced the comedy stage, Bloomberg reports.
The fund, managed by Tokyo-based asset management firm Fundnote, aims to capitalize on undervalued stocks while navigating the increasing volatility in the Japanese market.
The fund’s investment strategy will focus on identifying stocks with limited downside, utilizing metrics such as price-earnings and price-to-cash flow ratios, with the ultimate goal of generating alpha returns. Providing investment advice to the fund will be Keizo Takeiri, a veteran of Goldman Sachs, and Toshiya Imura, a former comedian with a significant following of over 334,000 on social media platform X. Imura’s disclosed stock holdings have previously demonstrated the power to move share prices, highlighting his influence within the retail investor community.
The new fund will initially be capped at ¥10 billion ($63.5 million). However, a potential hurdle to attracting widespread retail investment is its inability to qualify for Japan’s tax-free investment scheme for individuals, known as NISA. This exclusion may limit the fund’s appeal to a broad base of individual investors despite its unique advisory team.
The launch comes at a time of increased uncertainty in Japanese equities. While the market is poised to close the year with gains, heightened volatility has emerged alongside a surge in activist investors and deal activity. Furthermore, the Bank of Japan is anticipated to raise interest rates next year, and the incoming Trump administration is contributing to global market uncertainties.
The fund’s success will likely hinge on the advisory team’s ability to effectively navigate these challenges while identifying opportunities in a rapidly evolving market.
