A top-performing equity fund is pocketing gains on Japanese chipmakers to buy shares left behind during the market’s world-beating rally.
The Alma Eikoh Japan Large Cap Equity fund, which is outperforming 99% of peers this year, has cut its position in Renesas Electronics by almost a third over the past month as the stock more than doubled in value year to date, according to James Pulsford, who co-manages the ¥126.6 billion ($875 million) fund. Some of that money went into "high quality” defensive names such as noodle-maker Nissin Foods Holdings and soap producer Kao.
"We’ve recycled some of the things that have done well into some of the recent poor performers with strong fundamentals,” said Pulsford, a London-based fund manager at Alma Capital.