Insight into the Fund's Q1 2024 Investment Moves and 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 first quarter of 2024. The Fund, which commenced on August 31, 2007, aims for long-term capital appreciation, focusing on businesses with robust growth potential, exceptional management, and attractive valuations. The portfolio managers employ rigorous, on-site research to identify arbitrage opportunities, resulting in a concentrated portfolio that reflects their best investment ideas.
Summary of New Buys
Hennessy Japan Small Cap Fund (Trades, Portfolio) expanded its portfolio with 5 new stocks during the quarter. Noteworthy additions include:
- Nishi-Nippon Financial Holdings Inc (TSE:7189, Financial), with 159,000 shares, making up 1.74% of the portfolio and valued at ¥1.83 billion.
- Gakujo Co Ltd (TSE:2301, Financial), comprising 112,500 shares, representing 1.29% of the portfolio, with a total value of ¥1.35 billion.
- Nabtesco Corp (TSE:6268, Financial), with 67,300 shares, accounting for 1.23% of the portfolio and a total value of ¥1.29 billion.
Key Position Increases
The Fund also bolstered its stakes in 10 stocks, with significant increases in:
- COSMOS Pharmaceutical Corp (TSE:3349, Financial), adding 14,000 shares for a total of 19,300 shares, marking a 264.15% increase in share count and impacting the portfolio by 1.43%, valued at ¥2.07 billion.
- TOCALO Co Ltd (TSE:3433, Financial), with an additional 82,900 shares, bringing the total to 137,900 shares, a 150.73% increase in share count, valued at ¥1.47 billion.
Summary of Sold Out Positions
The Fund exited 6 holdings entirely in Q1 2024, including:
- Nishi-Nippon Financial Holdings Inc (FSE:7189, Financial), selling all 159,000 shares, impacting the portfolio by -1.92%.
- Benesse Holdings Inc (TSE:9783, Financial), liquidating 106,100 shares, causing a -1.27% impact on the portfolio.
Key Position Reductions
Hennessy Japan Small Cap Fund (Trades, Portfolio) also reduced its positions in 16 stocks. The most significant reductions were:
- Towa Corp (TSE:6315, Financial), by 35,200 shares, resulting in a -40.6% decrease in shares and a -1.22% impact on the portfolio. The stock traded at an average price of ¥6,750.5 during the quarter and has returned 32.10% over the past 3 months and 35.62% year-to-date.
- Iwatani Corp (TSE:8088, Financial), by 25,100 shares, resulting in a -51.54% reduction in shares and a -1.21% impact on the portfolio. The stock traded at an average price of ¥6,717.59 during the quarter and has returned 24.70% over the past 3 months and 22.88% year-to-date.
Portfolio Overview
As of the first quarter of 2024, Hennessy Japan Small Cap Fund (Trades, Portfolio)'s portfolio consisted of 64 stocks. The top holdings included 2.8% in Daihen Corp (TSE:6622, Financial), 2.53% in Towa Corp (TSE:6315), 2.36% in Nihon Kohden Corp (TSE:6849, Financial), 2.31% in Takasago Thermal Engineering Co Ltd (TSE:1969, Financial), and 2.27% in Tokyo Ohka Kogyo Co Ltd (TSE:4186, Financial). The holdings are primarily concentrated across 10 industries, showcasing the Fund's diverse yet focused investment 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.
