Key Takeaways
- • Hedge fund managers pitched Japanese equities at the inaugural Sohn Tokyo Investment Conference on 16 October, according to Bloomberg, as corporate governance reforms and improved profitability draw renewed investor interest.
- • Silq Capital CIO Hideki Kinuhata expects Makino Milling Machine's earnings to rise 80% over the three years to March 2028, driven by aerospace demand.
- • Japan Catalyst's Riho Yokozawa forecast roughly 80% revenue growth for OBIC Business Consultants, while Ruane Cunniff's Marc Wallach sees Money Forward's operating margins reaching 30% with earnings growth of up to 25% a year.
- • Change Global's Thea Jamison argued Telkom Indonesia offers about 90% upside despite an MSCI-driven selloff, and Pertento Partners' Eduardo Marques projected 100% upside for Hanwha Corp while turning bearish on Ecopro and Ecopro BM.
- • Oasis Management's Seth Fischer renewed his activist campaign against Kusuri no Aoki Holdings, pressing for explanations of stock options issued to Aoki family members.
Summary
Hedge fund managers used the inaugural Sohn Tokyo Investment Conference, held on 16 October, to highlight opportunities across Japanese equities, according to Bloomberg. The pitches came against a backdrop of enthusiasm for Japanese stocks following record market highs earlier this year, with investors citing corporate governance reforms, profitability gains and improved shareholder returns.
In industrials and technology, Silq Capital's Hideki Kinuhata identified machine-tool maker Makino Milling Machine as attractive after it successfully resisted takeover attempts, forecasting 80% earnings growth over the three years to March 2028 on rising aerospace demand across commercial aviation, defence and satellites. Harmonic Drive Systems was put forward by TriVista Capital's Masaki Gotoh as a beneficiary of demand for humanoid robotics and physical AI. Software names also featured: Japan Catalyst's Riho Yokozawa forecast about 80% revenue growth for OBIC Business Consultants, citing pricing power despite concerns over AI disruption, and Ruane Cunniff's Marc Wallach backed Money Forward, arguing that Japan's market offers favourable conditions for software profitability.
Several managers looked beyond Japan. Thea Jamison of Change Global Investment argued that PT Telkom Indonesia offers roughly 90% upside despite a sharp selloff in Indonesian equities after an MSCI warning over the country's emerging-market classification. Eduardo Marques of Pertento Partners was bullish on South Korea's Hanwha Corp and its aerospace business, projecting up to 100% upside amid rising global defence spending, but bearish on battery materials makers Ecopro and Ecopro BM, citing stretched valuations, declining profitability, debt and excess capacity. In financials, Polymer Capital's Daisuke Nakayama backed Orix, arguing its shift toward earnings from third-party capital and leverage could support a higher valuation multiple. Blue Orca Capital's Soren Aandahl highlighted Rohm, Chubu Electric Power and TRE Holdings as beneficiaries of indirect stakes in Toshiba, arguing a future Toshiba IPO could produce substantial gains relative to their market capitalisations.
Activism was also a focus. Oasis Management founder Seth Fischer renewed his campaign against Kusuri no Aoki Holdings, saying he would keep pressing the drugstore operator on stock options issued to members of the Aoki family.
In industrials and technology, Silq Capital's Hideki Kinuhata identified machine-tool maker Makino Milling Machine as attractive after it successfully resisted takeover attempts, forecasting 80% earnings growth over the three years to March 2028 on rising aerospace demand across commercial aviation, defence and satellites. Harmonic Drive Systems was put forward by TriVista Capital's Masaki Gotoh as a beneficiary of demand for humanoid robotics and physical AI. Software names also featured: Japan Catalyst's Riho Yokozawa forecast about 80% revenue growth for OBIC Business Consultants, citing pricing power despite concerns over AI disruption, and Ruane Cunniff's Marc Wallach backed Money Forward, arguing that Japan's market offers favourable conditions for software profitability.
Several managers looked beyond Japan. Thea Jamison of Change Global Investment argued that PT Telkom Indonesia offers roughly 90% upside despite a sharp selloff in Indonesian equities after an MSCI warning over the country's emerging-market classification. Eduardo Marques of Pertento Partners was bullish on South Korea's Hanwha Corp and its aerospace business, projecting up to 100% upside amid rising global defence spending, but bearish on battery materials makers Ecopro and Ecopro BM, citing stretched valuations, declining profitability, debt and excess capacity. In financials, Polymer Capital's Daisuke Nakayama backed Orix, arguing its shift toward earnings from third-party capital and leverage could support a higher valuation multiple. Blue Orca Capital's Soren Aandahl highlighted Rohm, Chubu Electric Power and TRE Holdings as beneficiaries of indirect stakes in Toshiba, arguing a future Toshiba IPO could produce substantial gains relative to their market capitalisations.
Activism was also a focus. Oasis Management founder Seth Fischer renewed his campaign against Kusuri no Aoki Holdings, saying he would keep pressing the drugstore operator on stock options issued to members of the Aoki family.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.