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.
Instead, the managers added to two positions, and reduced five positions. The portfolio contains 24 stocks in total and is valued at $41 million. The largest sector concentrations are Industrials at 33.9%, Consumer Cyclical at 33.3% and Healthcare at 14.3%.
Adds
MISUMI Group Inc. (TSE:9962, Financial)
Hennessy increased the position in MISUMI Group by 3.18% to 74,700 shares in total. The stock’s price in the third quarter averaged 3,180 yen. The position makes up 5.9% of the portfolio.
MISUMI Group Inc. manufactures and sells shafts, bushes, linear guides, locating parts, pulleys, aluminum frames and stages, sells punches, dies, spring guides, ejector pins, core pins, guides and retainers. MISUMI Group Inc. has a market cap of $287.9 billion; its shares were traded at around 3,165.00 yen with a P/E ratio of 23.10 and P/S ratio of 1.58. The dividend yield of MISUMI Group Inc. stocks is 0.86%. MISUMI Group Inc. had an annual average earnings growth of 19.50% over the past five years.
Terumo Corp (TSE:4543, Financial)
Managers increased the Terumo Corp position by 5.35% to 92,200 shares in total. The stock price averaged 2,467 yen per share in the third quarter. The position comprises 5.25% of the portfolio.
Terumo Corp. is a manufacturer and supplier of pharmaceuticals and medical tools and equipment. Terumo Corp has a market cap of $979.38 billion; its shares were traded at around 2,579.00 yen with a P/E ratio of 29.20 and P/S ratio of 2.08. The dividend yield of Terumo Corp stocks is 0.90%. Terumo Corp had an annual average earnings growth of 4.30% over the past five years.
Largest Reductions
Itochu Corp (TSE:8001, Financial)
Hennessy reduced its Itochu Corp position by 24.2% to 30,700 shares. The stock price averaged 1,336 yen in the third quarter. The position comprises 0.96% of the portfolio.
Itochu Corp is incorporated in Japan. It is a trading company. Itochu Corp has a market cap of $2008.85 billion; its shares were traded at around 1,267.50 yen. The dividend yield of Itochu Corp stocks is 3.02%.
Marubeni Corp (TSE:8002, Financial)
Hennessy reduced its Marubeni Corp position by 26.98% to 46,000 shares. The stock’s price averaged 752 yen per share in the third quarter. The position comprises 0.8% of the portfolio.
Marubeni Corporation engages in various businesses, such as foods, textiles and other daily-use products to energy and resource development, and other infrastructure indispensable to nations. Marubeni Corp has a market cap of $1262.67 billion; its shares were traded at around 727.60 yen with a P/E ratio of 7.60 and P/S ratio of 0.22. The dividend yield of Marubeni Corp stocks is 2.79%. Marubeni Corp had an annual average earnings growth of 8.20% over the past 10 years.
Mani Inc. (TSE:7730, Financial)
Hennessy reduced its position in Mani Inc. by 62.32% to 2,600 shares in total. The stock’s price averaged 5,895 yen per share in the third quarter. The position comprises 0.36% of the portfolio.
Mani Inc. is a maker of medical instruments specializing in surgical and dental products. Mani Inc. has a market cap of $68.65 billion; its shares were traded at around 6,220.00 yen with a P/E ratio of 26.10 and P/S ratio of 6.17. The dividend yield of Mani Inc. stocks is 0.80%.
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