A top-performing Japanese small-cap fund is betting that pressure on companies to provide financial information in English will help spur demand for shares that foreign investors tend to avoid.
Gesiuris Asset Management’s Marc Garrigasait, who manages the Japan Deep Value Fund FI from Barcelona, got a head start by side stepping domestic brokers for information and spending months studying translated material to help find undervalued firms with liquid assets. This year it’s enabled his fund to beat 97% of its peers, according to Bloomberg data.
"When we analyzed all these annual reports translated to English, that’s the moment that we said, ‘wow, this is incredible, we will launch a fund,’” said Garrigasait, who started Japan Deep Value in 2016.