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Six New Japanese Stocks Chosen by Long-Term Fund

Holly LaFon

Holly LaFon

257 followers

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%.

The Largest New Buys

Tochigi Bank Ltd. (TSE:8550)

Hennessy Japan Small Cap Fund (Trades, Portfolio)’s largest new buy was Tochigi Bank Ltd., of which it acquired 86,000 new shares, equaling 2.2% of the portfolio. The quarter’s price averaged ¥424 a share.

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Tochigi Bank Ltd. is a regional bank based in Tochigi. Tochigi Bank Ltd. has a market cap of $49.91 billion; its shares were traded at around ¥424.00 with a P/E ratio of 7.20 and P/S ratio of 1.05. The dividend yield of Tochigi Bank Ltd. stocks is 0.72%.

Fujibo Holdings Inc. (TSE:3104)

The fund purchased 148,000 shares of Fujibo Holdings, a 2% portfolio holding, with an average quarterly price of ¥238 a share.

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Fujibo Holdings Inc. manufactures cotton, wool, chemical and synthetic fibers. Fujibo Holdings Inc. has a market cap of $30.8 billion; its shares were traded at around $271.00 with a P/E ratio of 24.20 and P/S ratio of 0.82. The dividend yield of Fujibo Holdings Inc. stocks is 3.13%.

SNT Corp. (TSE:6319)

The fund purchased 54,900 shares of SNT Corp. in the first quarter, equal to 1.4% of the portfolio. The price for the quarter averaged ¥393 per share.

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SNT Corp engages in the manufacture and sale of forged products. SNT Corp has a market cap of $10.19 billion; its shares were traded at around $401.00 with a P/E ratio of 8.0 and P/S ratio of 0.54. The dividend yield of SNT Corp stocks is 4.80%. SNT Corp had an annual average earnings growth of 48.60% over the past five years.

Trans Cosmos Inc. (TSE:9715)

The fund purchased 10,000 shares of Trans Cosmos in the first quarter, a 1.4% portfolio weight. The share price averaged ¥2186 in the quarter.

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Trans Cosmos Inc. provides information processing outsourcing services. Trans Cosmos Inc. has a market cap of $86.52 billion; its shares were traded at around $2160.00 with a P/E ratio of 11.4 and P/S ratio of 0.49. The dividend yield of Trans Cosmos Inc. stocks is 1.52%.

Hakudo Co. Ltd. (TSE:7637)

The fund bought 18,000 shares of Hakudo Co. Ltd., a 1.1% portfolio weight. The share price averaged $947 for the quarter.

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Hakudo Co. Ltd. is engaged in processing and sale of plate, bar, tube of aluminiums, elongated copper products, stainless steels and plastics. Hakudo Co. Ltd. has a market cap of $12.06 billion; its shares were traded at around $945.00 with a P/E ratio of 12.0 and P/S ratio of 0.49. The dividend yield of Hakudo Co. Ltd. stocks is 5.04%.

Hennessy Japan Fund (Trades, Portfolio) New Buy

Kubota Corp. (TSE:6326)

Hennessy Japan Fund (Trades, Portfolio)’s only new stock was 45,000 shares of Kubota, a 1.5% weighting in its portfolio. The price over the stock averaged ¥1514 for the quarter.

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Kubota Corp. was founded in 1890 and was incorporated in 1930 under the Commercial Code of Japan. Kubota Corp. has a market cap of $1716.84 billion; its shares were traded at around $1373.00 with a P/S ratio of 1.47. The dividend yield of Kubota Corp. stocks is 1.91%.

For more Hennessy Japan Fund (Trades, Portfolio) stocks, go to its portfolio here. For more Hennessy Japan Small Cap Fund (Trades, Portfolio) stocks, go to its portfolio here.

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