Sun, Aug 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers July 2014

FUND PROFILE: Convector Capital, Mayar Capital, 1900 Investments

Convector Capital: most of Japan's third arrow reforms are disappointing Emmanuel Ferreira

As Japan is about to launch Abenomics' third arrow reforms, an emerging long/short equity hedge fund manager comments.

In a televised address to the nation on Tuesday, Prime Minister Shinzo Abe disclosed a new set of economic policies intended to kick-start growth in Japan. Mr. Abe had already implemented monetary and fiscal stimulus to raise economic growth 18 months ago, the so-called first two "arrows" of his Abenomics agenda. According to the New York Times, the most highly anticipated third arrow — changes intended to bring a healthy dose of competition and innovation to the economy — has largely underwhelmed. The final details of his plan to lower corporate tax rates are not finalized and under threat, and compromises had to be made on the labor market deregulation proposals. However, there is a strong set of proposal in place for the overhaul of corporate governance and a code is being prepared, says the paper. Abe also wants a reduction in cross-shareholdings, which is common among Japanese corporations.

Critics described the latest measures as resembling a dart more than an arrow with few of the more than 230 proposals likely to take effect, or have the desired impact, given resistance to change in Japan's business world and bureaucracy,The Guardian reports

Timid reforms

According to Convector Capital Management, an alternative asset manager based in New York, most of the reforms are disappointing.

David Malpass, Senior Advisor at the firm, writes that for a start, the corporate tax cut will be offset by tax increases elsewhere, so won't show obvious benefits. There are measures to encourage woman to join the labor force but other labor market reforms are marginal.......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Opalesque Exclusive: Credit-focused hedge fund Numen Capital expects more volatility in Europe in coming months[more]

    Benedicte Gravrand, Opalesque Geneva: A London-based hedge fund, which has just hired two emerging managers, is cautious on Europe. Vassilis Paschopoulos and former Lehman’s colleague Nikos Kargadouris, launched a London-based credit-focused hedge fund called

  5. Performance - Hedge funds bruised by stocks’ meltdown, Capstone’s volatility hedge fund is having a monster month thanks to market mayhem[more]

    Hedge funds bruised by stocks’ meltdown From WSJ.com: Hedge-fund managers like to promise their investors protection from market swings. In the recent stock swoon, many were caught off guard. Billionaire managers such as Leon Cooperman, Raymond Dalio and Daniel Loeb are deeply in the red

 

banner