The index-beating Hennessy Japan Fund (Trades, Portfolio) on Wednesday reported buying one new stock in the third quarter, Japan’s Fast Retailing Co. Ltd. (TSE:9983, Financial), while making the largest increase to its position in Misubishi Corp. (TSE:8058, Financial).
Hennessy Japan Fund (Trades, Portfolio) is helmed by Masakazu Takeda and Tadhiro Fujimura and has achieved a 9.17% return in its investor class since its inception in October 2003, compared to a 4.94% gain in the Tokyo Price Index (TOPIX, Financial). Over the past year, it has pulled in a 16.59% increase, compared to a 21.39% growth in the index.
In the fund’s second quarter letter, the managers wrote, “We believe one of the most important factors to influence Japanese stocks this year will be corporate earnings growth.”
The fund is dedicated to deep analysis, on-site research and attractively priced stocks.
New Buy: Fast Retailing Co. Ltd.
Hennessy Japan Fund (Trades, Portfolio) purchased 14,500 shares of the company, giving it a 2.11% weighting in their stock portfolio. The stock’s price averaged 33,064 yen per share for the third quarter.
Fast Retailing is a holding company that owns several brands such as Uniqlo, J Brand, G.U. and others. It has headquarters in Yamaguchi, Japan.
Fast Retailing Co. Ltd. has a market cap of 3,484.12 billion yen; its shares were traded around 34,170.00 yen with a P/E ratio of 35.93 and P/S ratio of 1.90. The trailing 12-month dividend yield of Fast Retailing Co. Ltd. is 1.02%. The forward dividend yield of Fast Retailing Co. Ltd. is 1.02%. Fast Retailing Co. Ltd. had annual average earnings growth of 9.8% over the past 10 years. GuruFocus rated Fast Retailing Co. Ltd. the business predictability rank of 4.5-star.
Add: Mitsubishi Corp.
Hennessy Japan Fund (Trades, Portfolio) increased its position in the company 29.1%, buying 113,800 shares, which raised its stake to 505,200 shares. The company represents 5.3% of the fund’s stock portfolio. In the third quarter, the stock’s price averaged 2,499 yen per share.
Mitsubishi is the largest trading company in Japan and operates seven segments across a range of industries.
Mitsubishi Corp. has a market cap of 4,144.29 billion yen; its shares were traded around 2,614.00 yen with a P/E ratio of 9.09 and P/S ratio of 0.62. The trailing 12-month dividend yield of Mitsubishi Corp. is 3.44%. The forward dividend yield of Mitsubishi Corp. is 3.44%. Mitsubishi Corp. had an annual average earnings growth of 2.90% over the past five years.
