Insightful 13F Filing Update Reveals Key Investment Moves in Q4 2023
Hennessy Japan Fund (Trades, Portfolio), known for its strategic investments in Japanese equities, has revealed its latest portfolio adjustments in the N-PORT filing for the fourth quarter of 2023. Established on October 31, 2003, the Fund is dedicated to long-term capital appreciation, focusing on Japanese companies that exhibit strong market growth potential, exceptional management, and robust financial health. Hennessy's investment approach is characterized by a blend of quantitative stock selection and disciplined team management, aiming to capitalize on the discrepancy between a company's market price and its fundamental value. The portfolio is concentrated, reflecting the managers' highest conviction picks.
Key Position Increases
During the quarter, Hennessy Japan Fund (Trades, Portfolio) augmented its holdings in 19 stocks. Noteworthy among these was the significant expansion of its stake in Shin-Etsu Chemical Co Ltd (TSE:4063, Financial), with an additional 133,500 shares bringing the total to 504,700. This move increased the share count by 35.96% and had a 1.44% impact on the current portfolio, valued at ¥15,092,240. Another substantial increase was in Recruit Holdings Co Ltd (TSE:6098, Financial), with an additional 126,400 shares, resulting in a 36.72% rise in share count and a total value of ¥13,493,380.
Summary of Sold Out Positions
The Fund also made decisive exits, completely selling out of Ariake Japan Co Ltd (TSE:2815, Financial). This divestiture involved liquidating all 34,600 shares, which had a -0.44% impact on the portfolio.
Key Position Reductions
Concurrently, Hennessy Japan Fund (Trades, Portfolio) reduced its positions in 10 stocks. The most significant reductions included Terumo Corp (TSE:4543, Financial), with a 34.19% decrease in shares, impacting the portfolio by -0.82%. Terumo Corp's stock traded at an average price of ¥4,150.9 during the quarter. Rohm Co Ltd (TSE:6963, Financial) also saw a substantial cut of 69.38% in shares, resulting in a -0.54% portfolio impact. Rohm's stock had an average trading price of ¥2,916.9 over the same period.
Portfolio Overview
As of the fourth quarter of 2023, the Hennessy Japan Fund (Trades, Portfolio)'s portfolio comprised 29 stocks. The top holdings included 7.46% in Hitachi Ltd (TSE:6501, Financial), 7.16% in Mitsubishi Corp (TSE:8058, Financial), 5.74% in Mitsubishi UFJ Financial Group Inc (TSE:8306, Financial), 5.45% in Shin-Etsu Chemical Co Ltd (TSE:4063, Financial), and 5.36% in Seven & i Holdings Co Ltd (TSE:3382, Financial). The Fund's investments are primarily distributed across eight industries, including Industrials, Financial Services, Technology, Consumer Defensive, Healthcare, Basic Materials, Consumer Cyclical, and Communication Services, reflecting a diverse yet focused approach to sector allocation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
