We believe Japanese equity markets have been excessively dominated by short-term trading. Massive resources are spent trying to guesstimate quarterly earnings results in an attempt to arbitrage the speed of information dissemination. Alternatively, "engagement" is often cited to create value, even though the target event's objective often is immediate stock appreciation rather than long term business improvement. However, we believe that the role of shareholders should be to help contribute to long term corporate value enhancement by understanding and aligning the interests of corporate management toward a long-term sustainable business. Shareholders should have the same responsibility as management and employees in supporting the business that they own.
We hope to provide a new model for shareholders in Japan. Our goal is to support the evolution of business by becoming long term stakeholders through investment and work constructively with management to improve the business which should ultimately lead to value appreciation. Unlike passive investing or (currently) socially-unaccepted aggressive activism, we embrace the true spirit of the Stewardship Code. By realizing a sustainable value enhancing strategy for companies, we hope to maximize long term alpha returns for investors. This is our "Japan Constructivism".
Based on our 8+ years experience managing a deep fundamental, value-enhancing engagement approach to investing, we have further crystallized our philosophy to bridge successful investing using a value-based paradigm and experienced management consulting to positively influence corporate behavior in order to maximize the value of our investments. Our organizational structure and investment process is based on our three core priciples of "Value for Investors", "Value for Companies", and "Value for Society".