Daito Trust Construction Co. (TSE:1878, Financial), the sole real estate holding in the Fund, had an 8% gain during the quarter. We purchased the Japanese construction and real estate company in the first quarter of 2021 at a discount, when face-to-face sales lagged due to COVID-19; the company continued to encounter headwinds in the second quarter. We were vindicated in our timing, as Daito Trust recovered by the end of September on the back of decent new order numbers and higher real estate rental housing occupancy. Additionally, Japan has seen new COVID cases subsiding rapidly, with close to 68% of its population having received at least one dose of the vaccine, which should spur resumption of normal business operations.
From Bernard Horn (Trades, Portfolio)'s Polaris Global Value Fund third-quarter 2021 letter.
