Fund Manager: Akira Yaku
Company: Alithion Capital Management Pte. Ltd.
Alithion Capital is a Singapore-based investment manager founded in 2007 by Akira Yaku and Kentaro Ishizaki. Previously, the founders worked as proprietary traders at SBC (UBS) and Mizuho, respectively. In the beginning, Alithion managed a single managed account for Marubeni Corporation, one of the largest Japanese trading companies listed on the Tokyo Stock Exchange. Subsequently, on July 1, 2010, Alithion launched a new commingled fund and Marubeni shifted JPY \2 billion from its managed account, which had \3 billion, as a seed investor. The investment strategy of the new fund is the same as Marubeni’s managed account. Marubeni is one of the major shareholders of the firm.
The two portfolio managers have together over 35 years of extensive experience in trading Japanese equities and listed derivatives, primarily through proprietary trading desks of various sell-side firms. The fund aims to preserve capital and deliver returns of 10-15% annually with a target risk of 8-10% regardless of market directions.
Strategy of Akira Yaku
Concept:Capturing Volatility Change
First, we capture the phenomena of both volatility change on individual stocks and whole market rapid volatility change. Second, we transform the occurring changes into a profit-making opportunity.
- The target universe is the top 500 market cap companies.
- We target convergence against stock with soaring volatility caused by irrational investment behavior from market players. Subsequently, we determine whether the position can cope with the total market volatility surge.
- Under normal conditions, we hold a portfolio of 70 to 110 stocks in a long/short strategy, as well as index futures/options.
Strategy of Kentaro Ishizaki
Concept:Panic Creates Trend
- In a panic, the irrational investment behavior of market players becomes prominently apparent.
- The strong trend induced by such behaviors should be recognized as a profit-making opportunity.
- The target universe is the top 250 market cap companies.
- In the chart pattern, we identify “panic signs” based on analysis from past price fluctuation patterns.
- These price fluctuation patterns, together with various published information and data analysis, determine our decision whether to trade.