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Alternative Market Briefing

Japan is a hedge funds’ paradise, surrounded by misconceptions

Tuesday, June 19, 2012

amb
Edward J. Rogers
From Precy Dumlao, Opalesque Asia:

Japan is a hedge fund investor’s paradise especially for people who are looking for lower correlations and lower portfolio volatility, declared Ed Rogers head of research and investment firms Rogers Investment Advisors, Wolver Hill Asset Management, and Wolver Hill Advisors in the latest Opalesque Japan Roundtable.

The roundtable was sponsored by law firm Bingham McCutchen and Eurex and took place in May at Bingham's Tokyo office.

However, there are plenty of misconceptions about investing in Japan, Rogers added. But these same misconceptions allow knowledgeable hedge fund managers, like him, to make money allocating in Japan, he added.

He told the Roundtable participants, "Japan is easy to hate and it is well hated amongst the investor community and there is a lot of Japan bashing in the financial media in particular... But the reality is that this attitude makes it easier for us to make money in this market. We have the largest and most diversified opportunity set with the least amount of coverage in the world."

Rogers described Japan as a market with relatively sound financial reporting. The data companies are publishing is for the most part accurate and meaningful, compared to China "where almost everybody does no......................

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