View more on these topics

Julian Gibbs

I have not recommended investing in the Japanese stockmarket, except for some specialist smaller companies funds, for over 15 years. However, now I believe there are some good opportunities.

This is because half the companies in the Topix index are trading at below book value and there are around 100 companies in Japan trading on market capitalisations lower than the net cash on their balance sheets.

On the other hand, there are still some companies which are very much overvalued. So, what is the best way of taking advantage of this difficult market? I believe that Alex Griffiths of Odey Asset Management, formerly a successful Japanese fund manager at Abbey Life and Henderson, is the right man to back.

His fund – Odey Japan and general – is a conservatively managed long-short equity fund, a type of hedge fund where money can be made when shares go up and when they go down.

The fund&#39s performance since its launch six months ago is outstanding. It is up by 10.5 per cent while the Topix index has gone down by around 13 per cent over the same period.

Griffiths believes – and his performance so far has proved this – that fundamental analysis really works in Japan. The inefficiencies in valuations both within sectors and between sectors as well as on an international level provide some exciting investment opportunities.

The Odey Japan and general fund tends to buy stocks in industries that are at a turning point where the market places little value on their potential future returns. It then sells when the potential is reflected in the price.

Risk management is the key to its culture. It invests mainly in easily marketable stocks where it can close the position quickly. This fund should continue to be a winner.

Recommended

IFonline launches MPPI service

IFonline is launching a new broker service for mortgage payment protection insurance that allows applications to be made without re-keying the data for the mortgage application.The MPPI system follows IFonline&#39s incorporation of a solicitor referral system last month.IFonline sales and marketing director Mike Douglas says: “IFonline is striving to provide useful tools for intermediaries to […]

Manor Park gets cautious with guaranteed returns

Guernsey-based investment specialist Manor Park has introduced the guaranteed UK capital growth fund.The fund is an investment trust that will invest in the FTSE 100 index over a five-year term, and is guaranteed to return the capital at the end of the term. The fund is aimed at cautious investors.The return that an investor can […]

Bristol & West – Direct Rate Tracker

Tuesday, 8 May 2001.Type: High interest account.Minimum-maximum investment: £5,000-£100,000.Interest rates: 6.3 per cent gross a year, 6.13 per cent gross a month.Term: Until May 1, 2003.Offer period: Until further notice.Withdrawal penalties: 12 free withdrawals a year.Tel: 0808 1811111.

Low income households buying homes

Research by the Council of Mortgage Lenders has shown rocketing numbers of low-earners buying their homes with mortgages. Almost 30 per cent of people with the lowest incomes in the UK now own property paid for by a mortgage, compared with just 10 per cent 20 years ago. The figures show that a third of […]

Choose life…

Sarah Scott  – Marketing Consultant, Royal London  This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com