An investment manager at the world’s largest publicly traded hedge fund, Man Group, is adding Japan’s financial shares to her portfolio on the view the nation’s central bank will need to hike interest rates to tame inflation.
The relative stability in the yen also provides room for the Bank of Japan to act, according to Emily Badger, a co-manager of the Man Japan CoreAlpha Fund, which has £2.45 billion ($3.3 billion) of assets and outperformed 93% of its peers over the past three years, according to compiled data.
"Inflation is higher than last year, the yen-dollar is more stable than last summer,” said the U.K.-based portfolio manager. "We have therefore taken the opportunity in the short term to increase our position in the bank sector slightly, as we think the path is clearly towards normalization.”
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