Insightful Analysis of Hennessy Japan Small Cap Fund (Trades, Portfolio)'s Q4 2023 Portfolio Adjustments
Hennessy Japan Small Cap Fund (Trades, Portfolio), known for its strategic investments in smaller Japanese companies, has revealed its N-PORT filing for the fourth quarter of 2023. The Fund, established on August 31, 2007, aims for long-term capital appreciation, focusing on businesses with strong management and attractive valuations. With a rigorous selection process, the Fund's portfolio is a reflection of the managers' conviction in each holding, seeking to capitalize on the discrepancy between market price and fundamental value.
Summary of New Buys
Hennessy Japan Small Cap Fund (Trades, Portfolio) expanded its portfolio with 4 new stocks in the fourth quarter. Noteworthy additions include:
- Furukawa Co Ltd (TSE:5715, Financial), purchasing 84,400 shares, which now comprise 1.2% of the portfolio, valued at ¥1.18 billion.
- Daicel Corp (TSE:4202, Financial), with 97,300 shares, making up approximately 0.84% of the portfolio, valued at ¥827.41 million.
- Toyobo Co Ltd (TSE:3101, Financial), acquiring 114,800 shares, accounting for 0.78% of the portfolio, valued at ¥770.24 million.
Key Position Increases
The Fund also bolstered its stakes in 13 stocks, with significant increases in:
- Kyudenko Corp (TSE:1959, Financial), adding 21,000 shares for a total of 51,800 shares, marking a 68.18% increase in share count and a 0.63% portfolio impact, valued at ¥1.55 billion.
- Nishi-Nippon Financial Holdings Inc (FSE:7189, Financial), with an additional 50,500 shares for a total of 159,000 shares, representing a 46.54% increase in share count, valued at ¥1.89 billion.
Summary of Sold Out Positions
The Fund exited positions in 3 companies, including:
- transcosmos inc (TSE:9715, Financial), selling all 59,400 shares, which had a -1.39% impact on the portfolio.
- Kawada Technologies Inc (TSE:3443, Financial), liquidating all 14,000 shares, resulting in a -0.55% portfolio impact.
Key Position Reductions
Hennessy Japan Small Cap Fund (Trades, Portfolio) reduced its holdings in 9 stocks. The most notable reductions were:
- Towa Corp (TSE:6315, Financial) by 36,100 shares, a -29.4% decrease, impacting the portfolio by -0.65%. The stock's average trading price was ¥3,939.57 during the quarter, with a 73.09% return over the past 3 months and a 322.95% year-to-date return.
- NEC Networks & System Integration Corp (TSE:1973, Financial) by 50,000 shares, a -36.26% reduction, impacting the portfolio by -0.63%. The stock's average trading price was ¥1,960.95 during the quarter, with a 20.08% return over the past 3 months and a 46.45% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, Hennessy Japan Small Cap Fund (Trades, Portfolio)'s portfolio consisted of 65 stocks. The top holdings included 3.24% in Saizeriya Co Ltd (TSE:7581, Financial), 3% in Towa Corp (TSE:6315), 2.39% in Musashino Bank Ltd (TSE:8336, Financial), 2.35% in Iwatani Corp (TSE:8088, Financial), and 2.27% in Takasago Thermal Engineering Co Ltd (TSE:1969, Financial). The Fund's investments are primarily distributed across 10 industries, demonstrating a diversified yet focused approach.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
