Strategic Capital, Inc. was founded in September 2012 to manage a broadly similar Japan Activist strategy as previously practiced by Mr. Maruki and Mr. Kato from 1999 to 2007.
The Tokyo-based Investment Manager attained a Discretionary Investment Manager (for QIIs only) in June 2014 and subsequently registered as full Discretionary Investment Manager in September 2015. Strategic Capital, Inc. manages a single co-mingled Cayman Islands Unit Trust called ‘The Japan Up Unit Trust’ with a Cayman Limited Partnership feeder structure for overseas investors.
Strategic Capital, Inc. is an independent and privately owned firm.
Strategic Capital, Inc. manages an Activist strategy focused on Japanese listed companies. The Investment Manager is unique for a Tokyo based Investment Managers to take a more confrontational approach when needed.
The fund invests in asset-rich public companies which the Investment Manager believes have market valuations substantially below their ‘intrinsic value’. Portfolio companies are typically small and mid caps with robust operations and stable profitability, but which have low market valuations principally due to rectifiable corporate governance and financial structure issues.
Once an influential minority stake is acquired in an investee company the Investment Manager will regularly meet with company managements to communicate opinions and press for change as a discerning and persistent shareholder. The Investment Manager is principally concerned with solving corporate governance and balance sheet issues to unlock shareholder value.
The Investment Manager strongly believes that improving corporate governance will be a key factor towards revitalizing the Japanese economy and that by properly placing and enhancing corporate governance, Japanese listed companies could become more productive and key contributors towards revitalizing Japanese economy as a whole, particularly in reallocating underperforming assets that are being inefficiently managed.