Japan’s Investment Firm Launches Dollar-Based Hedge FundA Japanese investment firm Fivestar Asset Management Co., is launching a dollar-based hedge fund that will invest in Japanese stocks, amid growing interest in the market from foreign investors.
Fivestar is seeking to raise 10 billion yen ($98 million) within a year for both the new fund and its existing yen-denominated Shinbi Japan Equity Long Short Fund, said Masamitsu Ohki, who runs the strategy. The Japanese currency-based fund started at the end of March with 1 billion yen and the return was about zero in the first two months, he said.
Interest in Japanâs stock market by overseas investors has increased since Prime Minister Shinzo Abe pledged to revive the world’s third-largest economy by pushing measures including a reduction in corporate tax and a review of the Government Pension Investment Fund’s portfolio, Ohki said. The benchmark Topix index capped a world-beating rally last year, surging 51 percent, and has since declined more than 5 percent this year.Source: Businessweek