How Japanese Hedge Funds Are Aiming Small for Big Returns

  • Simplex fund returns 29% in first half by targeting small caps
  • Japan-focused funds are world’s third-best performers so far

Aiming small is helping some Japanese hedge funds deliver outsize returns.

Simplex Asset Management Co.’s Japan Lower Market Strategy fund, which scours the nation’s three regional exchanges for small-cap stocks, returned 29 percent in the first six months of the year. Eschewing big-name companies also helped Sparx Group Co.’s Value Impact Fund gain 19 percent in the first half, while Strategic Capital Inc.’s activist fund added 15 percent, according to the firms.

The gains stand out even against the backdrop of rising returns for Japan hedge funds, which were buoyed by a rebound in the nation’s stocks to rank as this year’s third-best performers behind Pan-Asian and Latin America-focused strategies. The Eurekahedge Japan Hedge Fund Index gained 4.9 percent in the first six months, rebounding from its worst performance in five years in 2016…

How Japanese Hedge Funds Are Aiming Small for Big Returns

Categories : Hedge Funds

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