Five Star Asset Management Co., Ltd., was incorporated in April 2009 as an independent investment management company. The Company’s main businesses consist of (1) asset management based on a discretionary investment management contract, (2) the setting-up of investment trusts (both public and private placements) and asset management, and (3) investment advisory services. We started offering discretionary investment management services in October 2009, in which we primarily manage domestic and international funds, as well as the assets of corporate pension funds and other qualified institutional investors, among others. We have been offering investment advisory services exclusively to professional investors since December 2012. As for our investment trust management business, we set up our first publicly placed investment trust fund in November 2013 and have managed the fund since. As of the end of June 2015, the number of publicly placed and privately placed investment trust funds under our management is three and five, respectively. We have been a member of the Japan Investment Advisers Association since October 2009 and a member of the Investment Trusts Association, Japan, since September 2013.
We are an independent, boutique investment company with greater emphasis on bringing uniqueness and originality to the fore, and we have been making continuous efforts to enhance the quality of our investment management services in order to establish ourselves as a company that can make our customers truly satisfied.
Our strategy seeks to achieve absolute return by employing a long/short Japanese equity strategy. Our investment universe is more than 1,000 companies that are selected from among approximately 4,000 companies listed and to be listed on the Japanese financial instruments exchange. We select and invest in companies that are most appropriate for the size of a fund through bottom-up research and analysis of individual companies. The investment universe is broad, encompassing both value and growth stocks and all sectors, and not constrained by any specific theme, sector, etc. Our primary focus sectors are the financial and real estate sectors, where the extensive experience of our fund managers can be fully leveraged. We primarily focus on mid- and long-term investment strategies, but at the same time we make every effort to ensure that we maximize short-term return as well where appropriate. In the belief that everyday efforts to build optimal portfolios can go a long way and ultimately lead to the construction of the most optimal portfolios for mid- and long-term investment, it is our policy to change stock holdings flexibly (adjust net exposures) to ensure that a portfolio remains optimal. From the perspective of risk management, we focus on portfolio diversification from diverse points of view by ensuring that a portfolio consists of approximately 100 to 200 stocks in a long position and approximately 50 to 100 stocks in a short position. We also invest in stock index futures, etc. for hedging purposes as necessary.