Senjin Capital

The following may surprise you (charts below tell the story in pictures). #Japan is not known for large amounts of merger activity. In fact, for cultural, tax, and other historical reasons, for a founder or management team, selling your company has been seen as highly unattractive. That is changing rapidly. Public-market takeover activity in Japan has now reached 2/3 of the level of such activity in the US. This is driven by an increase in all types of M&A - management/family buyouts, private equity or strategic friendly deals, and a growing number of hostile tender offers (see comments for details of the hostile situations) . The overall number of de-listings from the Tokyo Stock Exchange reached record levels in 2024. Together with rising cash returns to shareholders and more focus on operational and capital efficiency, the increase in M&A activity is a key theme for the Japanese #market. #valueinvesting #assetmanagement

The rationale for owning Japanese stocks in two charts. The dramatic increase in dividends and buybacks has been driven by the push from the government, the Tokyo stock exchange, and investors for companies to improve their returns on equity. Expect more improvement from here as companies continue to sell down cross shareholdings and sell off non-core real estate.

The Japan corporate restructuring / M&A opportunity in one chart.

Incredible acceleration in announced buybacks in Japan. A lot of this is also related to cross-shareholding unwinds. As cross-shareholdings unwind, management teams become more responsive to investors, and operate their businesses in a more economically-motivated fashion.

Part 6 of my discussion with Misako "Terri" Terui for Nikkei-sha. In this video, we discuss the importance of improving corporate performance, and how management teams can control their own destinies and avoid the headaches of aggressive activism through adopting sensible strategies, or even choosing to privatise.

Part four of my discussion with Misako "Terri" Terui for Nikkei-sha. In this clip, we discuss the Tokyo Stock Exchange's call to action for listed companies, the importance of a strong corporate sector for Japan, and the likelihood of an increasing level of privatisation transactions going forward. I speak in English, but with Japanese subtitles.

Part 3 of my discussion with Misako "Terri" Terui for Nikkei-sha. This segment discusses what the Senjin Capital team look look for in a potential investment, the issues historically in Japan's corporate sector that have led the government to take action, and our views on whether the government's measures are being effective. I speak in the video in English, but with Japanese subtitles, as the intended audience is Japanese corporate managers and executives.

Part 2 of my discussion with Misako "Terri" Terui for Nikkei-sha. This segment covers the opportunity Tsubasa (Toby) Umezaki and I see in Japanese markets that led us to establishing Senjin Capital, and our approach to the opportunity. I speak in the video in English, but with Japanese subtitles, as the intended audience is Japanese corporate managers and executives.

I recently sat down with Misako "Terri" Terui, for a discussion hosted by Nikkei-sha, a subsidiary of Nikkei focused on professional education. The talk is aimed at an audience of Japanese corporate executives. I speak in English, with Japanese subtitles. In our discussion we cover my background, why Tsubasa (Toby) Umezaki and I decided to set up Senjin Capital, the opportunity we see in Japan, Senjin's approach to that opportunity, and our views on how we see the ongoing corporate reform process benefiting Japan as a whole. This is the first segment of our discussion.