Fund Manager: Kenichi Ura
Company: KU and Associates
KU and Associates is research driven advisory firm, mainly visiting companies established in February 2007. Through gathering and investigating various information from visiting companies, the firm makes investment scenario and builds portfolio according to the scenario. If a scenario is enough to treat one investment theme, expecting solid return, the firm makes a temporal fund in three years around according to the scenario.
Currently the firm is proposing Japan micro cap equity strategy. The firm has advisory license in Japan (Kanto Local Finance Bureau #715) and membership of Japan Investment Advisers Association.
Build strategy considering two laws: The first law is that ‘The market tends to get distoreted.’ The second law is that ‘Stocks are valued in wide range but with appropriate limit and will eventually reflect to fundamental price.’ Once correction begins, rational interpretation is possible. And the larger the distortion is, the higher expected return is. But it is not easy to recognise such a correction the propert timing. The point is rather than seeking for maxmum level of distortion, deciding level to generate enough return in medium term even if distortion is going further. The firm focuses on logic to decide the latter level. Current proposal of Japan micro cap equity strategy has excellent logic which targets correction of under-value and expectation of over-value caused by rank-up to small-mid cap from micro cap, avoiding value trap by also targetting high dividend yield, which increases in the case of further drop of stock price.