Fivestar Asset Management launches "TOB Hunter" fund
Taking advantage of the Tokyo Stock Exchange's “Action to Implement Management that is Conscious of Cost of Capital and Stock Price”, Fivestar Asset Management today launches the Capital Efficiency Improvement Fund (Nickname: "TOB Hunter"), an open-ended, additional type fund investing in domestic (Japanese) equities.
The fund primarily targets Japanese companies that are likely candidates for Takeover Bids (TOBs), particularly those involved in parent-subsidiary restructurings or subject to the shareholding ratio.
- Selection Criteria:
- Companies undergoing corporate governance reforms, potentially leading to the elimination of parent-child listings
- Analysis of companies with potential for changes in capital structure
- Focus on companies deemed undervalued based on metrics like PER (Price-to-Earnings Ratio) and PBR (Price-to-Book Ratio)
- Considers market capitalization, liquidity, and potential changes in capital relationships
- Targets to hold 50-150 Companies in the Portfolio
- Investment Objective: Achieve medium- to long-term growth of trust assets by primarily investing in the beneficiary certificates of a mother fund
- Investment Universe: Listed stocks on Japanese financial instrument exchanges (including those scheduled to be listed)
- Investment Process
- Identify 500-600 companies potentially subject to TOBs
- Narrow down the list based on valuation (PER, PBR), considering recent stock price trends and identifying undervalued companies
- Further refine the portfolio (around 50-150 companies) based on market capitalization, liquidity, and potential for changes in capital relationships
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