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Opalesque Exclusive: Contrarian signals pointing to Japan?
Matthias Knab reports “live” from Hong Kong: Richard Okuno, founder of Teneo Partners, said during the last 12 months he spent more time on risk management and hedging strategies than the 19 years before during his career. There would still be a shake-out going on in the Japanese hedge fund industry, and funds suffer from “huge” redemptions. The small cap market had “collapsed”, with detrimental effects on funds. In 2006, about 50 new funds entered the market, and many of them “did not think-through their business”. As the hedge fund industry “is and has always been a self-correcting industry, the survivors will be very strong on the other side.
Benoit Descourtieux, CIO, Calypso Capital which runs out of Hong Kong a Japan fund pointed out the improved fundamentals in Japan, where operating profit margins doubled within the past three years. With Chinese companies, this ratio did not change. While there is not much growth on the GDP front, the earnings growth of the Japanese companies is 8-10%, 1/3 from domestic growth and 2/3 com from outside the country.
Ed Rogers, CEO, Rogers Investment Advisors pointed out that in Japan at the personal and corporate level, there is “no debt and no leverage”, which creates room for economic expansion, for example in the M & A market. Prime real estate in Tokyo is up 45% over th...................... To view our full article Click here
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