Yokogawa Electric (TSE:6841), an electrical engineering and software company, had the largest negative impact on relative returns. Orders for Yokogawa’s components, used in the oil, gas and petrochemical industries, have been weak in recent months compared to the market as well as against our expectations. However, orders in this business tend to be lumpy, and we do not expect any trend of weakness. Thus, we added to this position during the quarter.
From Matthews Japan Fund (Trades, Portfolio)’s Second Quarter 2014 Commentary.
