We also initiated a position in marine-boat engine and motorcycle manufacturer Yamaha Motor (TSE:7272, Financial). The company is a global leader in marine engines amid a structural shift to outboard motors and increased appetite for more-powerful engines in Europe and the U.S. Its stock price halved due to market-share losses and a sluggish macro environment in the motorcycle business, both in emerging markets and in Europe. While the timing of its turnaround remained uncertain, the company took action in each market and we concluded shares were undervalued given the company's overall ability to generate free cash flow.
From Matthews Japan Fund (Trades, Portfolio)s' fourth-quarter 2019 commentary.
