Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>8697 Japan Exchange and retail facing brokers such as Matsui, SBI, and Monex may do better with Cboe +4.3% given the outlook for increased trading amid higher market volatility. </li>
<li>Japanese MedTech firms Terumo, Asahi Intecc, and Olympus underperformed globally. While FX plays a role, lower rates boost elective surgeries, making them prime candidates for a rebound.</li>
<li>NKY225 inclusion candidates 7453 Ryohin Keikaku and 7453 NRI look attractive as oversold longs as Index arbs will no doubt be rushing back as soon as the panic subsides.</li>
</ul>


8697 Japan Exchange and retail facing brokers such as Matsui, SBI, and Monex may do better with Cboe +4.3% given the outlook for increased trading amid higher market volatility. 
Japanese MedTech firms Terumo, Asahi Intecc, and Olympus underperformed globally. While FX plays a role, lower rates boost elective surgeries, making them prime candidates for a rebound.
NKY225 inclusion candidates 7453 Ryohin Keikaku and 7453 NRI look attractive as oversold longs as Index arbs will no doubt be rushing back as soon as the panic subsides.


Japan Morning Connection: 8697 JP, 7453 JP, 7453 JP

Investment Advisor, Upslope Capital Management

Upslope Capital Management

Investment Advisor

Investment advisor for Upslope Partners Fund, LP, a global long/short equity hedge fund.

Equity Bottom-Up

<ul><li>At the end of Q1, the overwhelming consensus – even among typically cautious types – was that investors needed to own stocks through at least the November election.</li><li>After all, markets are strong in election years and financial conditions should continue to improve and/or remain easier than they should be.</li><li>While dented by the recent correction, this narrative doesn’t really seem to have changed much.</li></ul>

At the end of Q1, the overwhelming consensus – even among typically cautious types – was that investors needed to own stocks through at least the November election.After all, markets are strong in election years and financial conditions should continue to improve and/or remain easier than they should be.While dented by the recent correction, this narrative doesn’t really seem to have changed much.

Upslope's Quarterly Investor Letter: Q1 2024

Japan Specialist

Mark Chadwick

<ul>
<li>
 Reforms Drive Improvement: Japan's corporate reforms, catalyzed by governance codes and TSE pressure, are fostering capital efficiency, shareholder value, and long-term equity gains.</li>
<li>
 "Name and Shame" Initiative Impact: TSE's disclosure initiative reveals 54% of Topix 500 companies enhancing capital efficiency, with early indications suggesting positive longer-term performance trends.</li>
<li>
 Future Alpha Opportunities: Expectation of increased disclosure in the coming months, particularly from proactive companies; potential for market surprises from obstructive firms trading below book value.</li>
</ul>



 Reforms Drive Improvement: Japan's corporate reforms, catalyzed by governance codes and TSE pressure, are fostering capital efficiency, shareholder value, and long-term equity gains.

 "Name and Shame" Initiative Impact: TSE's disclosure initiative reveals 54% of Topix 500 companies enhancing capital efficiency, with early indications suggesting positive longer-term performance trends.

 Future Alpha Opportunities: Expectation of increased disclosure in the coming months, particularly from proactive companies; potential for market surprises from obstructive firms trading below book value.


Japan Governance | Will Reforms Unlock Valuations

<ul>
<li>The TSE’s new efforts to encourage companies to disclose measures to improve their capital efficiency and stock prices correlate closely with general indicators of good governance.</li>
<li>Over 60% of companies that we classify as “Proactive” have already disclosed their status, while only around one third of “Obstructive” companies have done so.</li>
<li>Companies with higher levels of Board Independence and that are more aligned with shareholders are more likely to be better allocators of capital for long-term growth.</li>
</ul>


The TSE’s new efforts to encourage companies to disclose measures to improve their capital efficiency and stock prices correlate closely with general indicators of good governance.
Over 60% of companies that we classify as “Proactive” have already disclosed their status, while only around one third of “Obstructive” companies have done so.
Companies with higher levels of Board Independence and that are more aligned with shareholders are more likely to be better allocators of capital for long-term growth.


Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>We rate Japan Exchange as our 2024 high conviction buy in exchanges, for its attractive valuations, as well as its potential for increased market activity and big data revenue growth</li>
<li>We believe that Japan Exchange is the exception to the rule that DM exchanges need to diversify their revenue bases, as it is under less de-regulatory pressure</li>
<li>We also stick with Hong Kong Exchange as the deep value pick, as well as Deutsche Borse; we remain negative on Coinbase</li>
</ul>


We rate Japan Exchange as our 2024 high conviction buy in exchanges, for its attractive valuations, as well as its potential for increased market activity and big data revenue growth
We believe that Japan Exchange is the exception to the rule that DM exchanges need to diversify their revenue bases, as it is under less de-regulatory pressure
We also stick with Hong Kong Exchange as the deep value pick, as well as Deutsche Borse; we remain negative on Coinbase


Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

Japan

Japan Exchange Group Inc is the holding company created through the merger of Tokyo Stock Exchange Group, Inc and Osaka Securities Exchange Co., Ltd. The group provides and operates a marketplace for the trading of equities, futures, and options. The Group manages the trading, as well as administers listed stocks and registered members.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Japan Exchange Group (8697 JP)

Japan Morning Connection: 8697 JP, 7453 JP, 7453 JP

Japanese brokers may benefit from increased trading with Cboe, MedTech firms could rebound, and NKY225 inclusion candidates highlighted as...

Andrew Jackson

Upslope's Quarterly Investor Letter: Q1 2024

At the end of Q1, the overwhelming consensus – even among typically cautious types – was that investors needed to own stocks through at least the...

Upslope Capital Management

Japan Governance | Will Reforms Unlock Valuations

Japan's corporate reforms are improving capital efficiency and shareholder value, with potential for future alpha opportunities through increased...

Mark Chadwick

Japan Governance | The TSE Naughty List

The TSE promotes disclosure of capital efficiency measures, correlating with good governance. Proactive companies disclose more than obstructive...

Mark Chadwick

Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Japan Morning Connection: 8697 JP, 7453 JP, 7453 JP

​Japanese brokers may benefit from increased trading with Cboe, MedTech firms could rebound, and NKY225 inclusion candidates highlighted as...

Andrew Jackson

Upslope's Quarterly Investor Letter: Q1 2024

At the end of Q1, the overwhelming consensus – even among typically cautious types – was that investors needed to own stocks through at least the...

Upslope Capital Management

Japan Governance | Will Reforms Unlock Valuations

​Japan's corporate reforms are improving capital efficiency and shareholder value, with potential for future alpha opportunities through increased...

Mark Chadwick

Japan Governance | The TSE Naughty List

​The TSE promotes disclosure of capital efficiency measures, correlating with good governance. Proactive companies disclose more than obstructive...

Mark Chadwick

Global Exchanges – Japan Exchange Is Our 2024 High Conviction Call

​Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...

Victor Galliano

Japanese brokers may benefit from increased trading with Cboe, MedTech firms could rebound, and NKY225 inclusion candidates highlighted as...

Japan's corporate reforms are improving capital efficiency and shareholder value, with potential for future alpha opportunities through increased...

The TSE promotes disclosure of capital efficiency measures, correlating with good governance. Proactive companies disclose more than obstructive...

Japan Exchange is a high conviction buy due to attractive valuations, potential for higher market activity. We also like Hong Kong Exchange and...