Hennessy Japan Fund

Hennessy Japan Fund Premium Guru

Last Update: 01-04-2016

Number of Stocks: 21
Number of New Stocks: 1

Total Value: $109 Mil
Q/Q Turnover: 8%

Countries: JPN
Details: Top Buys | Top Sales | Top Holdings  Embed:

Hennessy Japan Fund Watch

  • Hennessy Japan Fund Reduces 13 Stakes in 4th Quarter

    Of the 21 companies involved in its transactions in the fourth quarter ended Oct. 31, 2015, Hennessy Japan Fund (Trades, Portfolio) reduced its stakes in 13.


    Its most noteworthy transaction, however, was its acquisition of a 115,600-share stake in SoftBank Group Corp. (TSE:9984), a Tokyo-based telecommunications company with operations in ecommerce, Internet, technology services, financial services and other businesses. The Fund paid an average price of ¥6,624.28 (about $55.56 in U.S. currency) per share. The deal had a 5.95% impact on the Fund’s portfolio.

      


  • Hennessy Japan Fund Comments on SoftBank Group Corp

    One of the most significant detractors from the Fund’s performance was SoftBank Group Corp (TSE:9984), one of Japan’s three mobile carriers. SoftBank, a new investment for the portfolio added in the third quarter, suffered from negative industry news, the eruption of price wars and the possibility of a Government-ordered plan to reduce wireless fees. The company is headed by its charismatic founder/president, Mr. Masayoshi Son, a 58-year old entrepreneur, who boasts an insatiable ambition to continue growing his firm globally for many years to come. We view the decline in the stock price of Softbank as a good opportunity to make a long-term investment in a company run by someone who we believe to be one of Japan’s best business leaders at an attractive price, and we feel that the potential risk-return profile of this investment is in our favor. The Fund continues to hold this position.

    From Hennessy Japan Fund (Trades, Portfolio)'s annual letter to shareholders 2015.  


  • Hennessy Japan Fund Annual Letter to Shareholders

    Dear Hennessy Funds Shareholder:

      


  • Hennessy Japan Fund Adds to 16 Stakes

    The Hennessy Japan Fund (Trades, Portfolio) pursues long-term capital appreciation by investing four-fifths of its net assets in Japanese companies. It hasn’t bought any new stakes or sold out any of its old ones since early this year, but it added to 16 existing stakes in the quarter ended July 31, including some of the most valuable in its portfolio.


    The Fund’s most noteworthy addition was its purchase of 16,700 shares of Shimano Inc. (TSE:7309), a Japanese maker of products for leisure activities, for an average price of ¥17251.2 (about $144.04 in U.S. currency) per share. The transaction, which had a 1.99% impact on the Fund’s portfolio, raised the Fund’s stake in Shimano by more than 57%.

      


  • Hennessy Japan Fund Adds to Existing Stakes in Second Quarter

    Hennessy Japan Fund (Trades, Portfolio) has a highly developed, time-tested investment strategy, looking for arbitrage opportunities between a company’s fundamental value and its market price. Sometimes it reduces its stakes, but, in the second quarter of 2015, the Fund only added to 17 existing stakes.


    The Fund made its most significant addition to its second-most valuable stake, MISUMI Group Inc (TSE:9962), a Japanese manufacturer and distributor of industrial products, tools and accessories. The Fund bought 319,700 shares for an average price of ¥1479.67 (approximately $12.05 in U.S. currency) per share. The transaction had a 4.27% impact on the Fund’s portfolio.

      


  • Hennessy Japan Fund Active in Top 10 Holdings in January

    The Hennessy Japan Fund (Trades, Portfolio) isn’t like many of the gurus we follow, who buy and sell millions of shares of stocks in their portfolios. The Hennessy Japan Fund (Trades, Portfolio)’s transactions are more modest – and, in some ways, more targeted.


    In January of this year, the Fund was active in all 10 of its top 10 holdings, adding to most but selling portions of some.

      


  • Hennessy Japan Fund Adds to Position in FUJI Seal International

    The Hennessy Japan Fund (Trades, Portfolio) screens for Japanese companies with strong businesses and management, regardless of market cap. The fund follows a value-oriented approach and usually has a concentrated number of holdings.


    Year-to-date, the fund has returned 6.98%, compared to negative returns for both its indices — Russell/Nomura Total Market Index at -3.03% and the Tokyo Stock Price Index at -3.49%. As of Dec. 31, the majority of the portfolio was held in consumer discretionary stocks at almost 25%, followed by consumer staples at 13%.

      


  • Hennessy Japan Fund Q4 2014 Comments and Opinions (Q&A)

    In December 2014, Prime Minister Shinzo Abe was reelected by a landslide, securing up to four more years of a stable political environment and giving the government time to implement the “Three Arrows” program. In the discussion below, the portfolio management team of the Hennessy Japan Fund and Hennessy Japan Small Cap Fund (Trades, Portfolio) addresses the country’s economic progress and potential prospects over the coming year.

    1. Would you please summarize the accomplishments from the implementation of the first two arrows?  


  • Hennessy Japan Fund Q4 2014 Commentary

    Since Abenomics began two years ago, we’ve seen some improvements in the Japanese economy. What should investors expect in 2015? In the discussion below, the portfolio management team of the Hennessy Japan Fund (Trades, Portfolio) and Hennessy Small Cap Japan Fund addresses Japan’s current economy and its impact on the market.

    1. Would you please summarize the economic progress following Prime Minister Shinzo Abe’s push for growth?  


  • Hennessy Japan Fund Comments on Sumitomo Corp

    Conversely, Japan’s second and third largest financial services groups, Sumitomo Mitsui Financial Group, Inc. and Mizuho Financial Group, Inc., and Japan’s leading general trading company Sumitomo Corporation (TSE:8053) were among the major detractors from the Fund’s performance. Meanwhile, weak commodity markets and project write-offs have dampened enthusiasm for Sumitomo Corporation (TSE:8053) leading to a -8% decline in its share price.

    From Hennessy Japan Fund (Trades, Portfolio)’s October 31, 2014 Letter to Shareholders.  


  • Hennessy Japan Fund Comments on Sumitomo Mitsui Financial Group and Mizuho Financial Group

    Conversely, Japan’s second and third largest financial services groups, Sumitomo Mitsui Financial Group, Inc (TSE:8316). and Mizuho Financial Group, Inc. (TSE:8411), and Japan’s leading general trading company Sumitomo Corporation were among the major detractors from the Fund’s performance. During the period, shares of Sumitomo Mitsui Financial Group, Inc. (TSE:8316) and Mizuho Financial Group, Inc (TSE:8411) dropped -7% and -2%, respectively in Yen terms, as low loan demand and Japan’s zero interest rate environments persist.

    From Hennessy Japan Fund (Trades, Portfolio)’s October 31, 2014 Letter to Shareholders.  


  • Hennessy Japan Fund Comments on Shimano Inc and ASICS Corp

    Among the strongest performing stocks in the Fund during the period were the world’s major electric motor manufacturer, Nidec Corporation, the global market share leader in bicycle parts, Shimano, Inc. (TSE:7309), and high performance running shoe maker, ASICS Corporation (TSE:7936). Solid earnings and strong franchises have led to steady share appreciation of both Shimano (TSE:7309)(+71%, in Yen terms) and ASICS (TSE:7936)(+50%, in Yen terms). The Fund continues to hold all of these positions.

    From Hennessy Japan Fund (Trades, Portfolio)’s October 31, 2014 Letter to Shareholders.  


  • Hennessy Japan Fund Comments on Nidec Corp

    Among the strongest performing stocks in the Fund during the period were the world’s major electric motor manufacturer, Nidec Corporation (TSE:6594), the global market share leader in bicycle parts, Shimano, Inc., and high performance running shoe maker, ASICS Corporation. Over the past twelve months, in Yen terms, shares of Nidec (TSE:6594) rallied +52% as the company continues to undergo a rapid transition to diversify its business portfolio from computer hard disk drive precision motors to a broader range of motors.

    From Hennessy Japan Fund (Trades, Portfolio)’s October 31, 2014 Letter to Shareholders.  


  • Hennessy Japan Fund’s October 31, 2014 Letter to Shareholders

    Dear Shareholder:


    As I look back at 2014, I realize that in this age of rapidly evolving technology, information is delivered and absorbed so quickly that it is difficult to remember what happened last week, let alone what’s happened over the course of an entire year. That is why I’d like to take a moment to recall some of the year’s highs and lows, economically, politically and socially, here in the U.S. and around the globe. 2014 was scarred by political partisanship in Washington, civil unrest in the U.S., Ukraine and many other countries, the arrival of terrorist group ISIS, and the frightening outbreak of Ebola. However, there were also positive events this year: In the U.S., we survived a government shutdown over healthcare reform, jobs reports have been consistently, albeit anemically, improving, and home prices remained relatively stable, after recovering significantly in 2013. The appointment of Janet Yellen as Chair of the Federal Reserve served to calm the nerves of business and political leaders alike. Japan successfully instituted its long- anticipated consumption tax increase, and the Bank of Japan stunned investors at the end of October when it unexpectedly expanded its already massive monetary stimulus.

      


  • Hennessy Japan Fund Q3 2014 Commentary

    The resurgence of the Japanese equity market has been underway since Prime Minister Shinzo Abe’s term began in 2012. What should investors expect from the economy and stocks going forward? Below, the portfolio management team addresses these questions and more.


    1. Would you please provide an update of Prime Minister Shinzo Abe’s growth strategy involving the “Three Arrows” program?

      


  • Hennessy Japan Fund Top Q3 Stock Adds and Reductions

    Japan prime minister Shinzo Abe’s second round of reforms launched in June should create a “more business-friendly environment,” Hennessy Japan fund managers wrote in their second quarter commentary. They didn’t, however, add any new stocks to their portfolio in the third quarter.

      


  • Hennessy Japan Fund Comments on Unicharm Corp

    Unicharm Corporation (TSE:8113), the baby and feminine care products maker, were among the major detractors from the Fund’s performance. Lastly, shares of Unicharm Corporation fell 8% as the perception of an intensifying competitive landscape became widely recognized by investors.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Comments on MISUMI Group Inc

    MISUMI Group, Inc. (TSE:9962), the maker and distributor of metal mold components and precision machinery parts, … were among the major detractors from the Fund’s performance. Shares of MISUMI Group, Inc. declined 11% on what we believe was the market’s growing concern over its outlook for fiscal year 2014.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Comments on Terumo Corp

    Conversely, Terumo Medical Corporation (TSE:4543), Japan’s largest medical device manufacturer, … were among the major detractors from the Fund’s performance. Shares of Terumo Medical Corporation fell 13% following its third quarter earnings announcement for its fiscal year ended March 31, 2014, as investors were disappointed with the decline in sales.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Comments on Ryohin Keikaku Co., Ltd.

    Among the strongest performing stocks in the Fund during the period were … and Ryohin Keikaku Co., Ltd. (TSE:7453), the operator of the MUJI brand retail chain store. Finally, shares of Ryohin Keikaku Co., Ltd. surged 18% due to the solid earnings announcement for its fiscal year ended February 28, 2014, and the upbeat guidance for the new fiscal year. The Fund continues to hold all of these positions.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Comments on Nidec Corp

    Among the strongest performing stocks in the Fund during the period were … Nidec Corporation (TSE:6594), the world’s major electric motor manufacturer, … Shares of both ... and Nidec Corporation jumped over … and 24%, respectively, following strong earnings results for the fourth quarter of calendar year 2013. The market also welcomed Nidec Corporation’s upward revision of its full-year earnings guidance for its fiscal year ended March 31, 2014. The Fund continues to hold all of these positions.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Comments on Rohto Pharmaceutical Co., Ltd.

    Among the strongest performing stocks in the Fund during the period were Rohto Pharmaceutical Co., Ltd. (TSE:4527), the leading over-the-counter ophthalmic medicines and skincare cosmetics producer, … Shares of both Rohto Pharmaceutical Co., Ltd. and … jumped over 28% and …, respectively, following strong earnings results for the fourth quarter of calendar year 2013. The Fund continues to hold all of these positions.


    From Hennessy Japan Fund’s Semi-Annual Report April 30, 2014.

      


  • Hennessy Japan Fund Semi-Annual Report April 30, 2014

    Letter to Shareholders


    Dear Shareholder:

      


  • Hennessy Japan Funds First Quarter 2014 Commentary

    In 2013, Prime Minister Shinzo Abe introduced his "Three Arrows" program to jumpstart the Japanese economy. Which policies have achieved success and which ones have been more difficult to implement?


    Prime Minister Abe's three-prong policy plan includes aggressive monetary easing, a fiscal stimulus package and a series of growth strategies. The first two policies were launched in early 2013. Since the two programs were under the control of the Japanese government, implementation occurred quickly and the impact was more immediate. The third arrow is comprised of a number of structural business and tax reforms geared to provide lasting benefits, such as wage growth on the corporate side and new savings programs aimed at increasing equity ownership by individuals.

      


  • Six New Japanese Stocks Chosen by Long-Term Fund

    The Hennessy Japan Fund (Trades, Portfolio) and Hennessy Japan Small-Cap Fund both seek attractively priced, strong businesses with capable management. Through both analyzing and visiting companies, managers choose stocks they perceive as having a significant “value gap.” The Hennessy Japan Fund (Trades, Portfolio) (HJPNX) has returned 7.9% since its inception in 2003, beating its benchmark Russell/Nomura Total Market Index return of 4.51%. Last year, its return was 31%.


    In the first quarter of 2014, the fund Hennessy Japan Small Cap Fund (Trades, Portfolio) selected nine new stocks, for 19% portfolio turnover. The Hennessy Japan Fund (Trades, Portfolio) added just one new stock, for a portfolio turnover of 18%.

      


  • Hennessy Funds 2013 Annual Letter

    Dear Hennessy Funds Shareholder:


    Looking back at 2013, it was a year of many highs and lows economically, politically, and socially here in the U.S. and around the globe. The year was marked with some fond memories: we survived two fiscal cliffs, anointed a new Pope, watched the Red Sox don facial hair and keep theirtown "Boston Strong," and home prices began to rebound around the country. But the year was also scarred by worsening political partisanship, civil unrest in many countries, flooding in Colorado, wildfiresin the West, and the tragedy of the Boston Marathon.

      


  • Hennessy Japan Fund Fourth Quarter Letter

    With the Japanese market up so strongly in 2013, have equities become too expensive ?


    Even though the Japanese market was up over 50% in yen terms in 2013, equity valuations are not expensive by historical standards. The current price-to-earnings ratio is approximately 16Xs and not expensive relative to other Asian markets. In addition, today's equity valuations are substantially below the huge premiums (30-40Xs price-to-earnings ratio) that investors paid for Japanese equities in the 1980s and 1990s.

      


  • Hennessy Japan Fund’s Top Five

    Hennessy Japan Fund seeks long-term capital appreciation by investing in equity securities of Japanese companies. The fund is managed by Yu Shimizu and Masakazu Takeda. Over the fourth quarter, the fund held on to a total of 23 stocks, with no new stock purchases over the duration of the quarter. The Hennessy Japan Fund was valued at $39 million as of the close of the fourth quarter.


    Keyence Corp (TSE:6861)

      


  • International Guru – Hennessy Japan Funds’ Top Five Holdings

    Hennessy Japan Fund seeks long-term capital appreciation by investing in equity securities of Japanese companies. The fund is managed by Yu Shimizu and Masakazu Takeda. Over the third quarter, the fund held on to a total of 23 stocks, with one new stock purchased over the duration of the quarter. The Hennessy Japan Fund was valued at $33 million as of the close of the third quarter.

      


  • Hennessy Japan Fund Second Quarter Commentary

    1. There appears to be renewed enthusiasm regarding the attractiveness of the Japanese market. What factors are driving this interest?

    Japan's new Prime Minister, Shinzo Abe, favors a monetary policy that includes stimulus actions that are similar to those initiated by the U.S. Federal Reserve and the European Central Bank. The Bank of Japan, Japan's Central Bank, is predicted to inject more liquidity into the Japanese economy within the next few months. These actions will likely result in a weaker yen, which could make Japanese goods less expensive to Japan's trading partners. The expectation of these actions has already led to a weakening of the yen.  


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