Hedge fund Verdad Advisers LP is preparing to launch a new Japan-focused fund targeting small-cap equities, as global investors increasingly look beyond blue chips for returns in Tokyo’s resurgent stock market.
Bloomberg (gated) carry the info.
- Founder Daniel Rasmussen said the fund could launch as early as this year and will extend the strategy of Verdad’s two micro-cap funds by identifying capital inefficiencies such as debt-heavy or cash-rich balance sheets.
- Unlike the existing funds, the new vehicle will target companies with market caps above $400 million.
- Rasmussen acknowledged obstacles, including limited liquidity and sparse English-language disclosures among smaller firms.
- Still, he said Tokyo’s corporate reform drive is pushing more companies to adopt shareholder-friendly practices, creating opportunities for long-term investors.
Japan’s small-cap stocks have significantly outperformed this year, with the MSCI Japan Small Value index climbing over 30%.
