Hennessy Japan Fund seeks long-term capital appreciation by investing in equity securities of Japanese companies. The fund is managed by Yu Shimizu and Masakazu Takeda. Over the second quarter, the fund held on to a total of 24 stocks, with no new stock purchases over the duration of the quarter. The Hennessy Japan Fund was valued at $41 million as of the close of the third quarter.
Ryohin Kelkaku (TSE:7453)
Hennessy Japan Funds’ largest holding over the third quarter is in Ryohin Keikaku. The fund currently holds on to 22,100 shares of the company, representing 0.08% of the company’s shares outstanding and 6.6% of their total portfolio.
The fund did not alter their position over the past quarter. The estimated price per share over the past quarter for Ryohin Kelkaku stocks was at ¥11001.13 per share. From this average price the price per share is trading up about 18.8%.
Hennessy Japan Funds’ historical holding history:
Ryohin Keikaku is in the operation of exclusive stores of MUJI products. The company’s product line includes knitwear, food and household items.
Ryohin Keikaku’s historical revenue and net income:
The analysis on Ryohin Keikaku reports that the company currently holds no debt, its dividend yield is near a 5-year low and its price is near a 10-year high. It also notes that the company has issued ¥361 million of debt over the past three years, but that its debt level is acceptable.
The Peter Lynch Chart suggests that the company is currently overvalued:
Ryohin Keikaku has a market cap of ¥346 billion. Its shares are currently trading at around ¥13070 with a P/E ratio of 20.30, a P/S ratio of 1.57 and a P/B ratio of 3.12. The company currently holds a dividend yield of 1.01%. The company had an annual average earnings growth of 17.70% over the past five years.
Kao Corp. (TSE:4452)
The fund’s second largest holding was in Kao Corp where they hold on to 64,200 shares of the company’s stock. This position makes up for 6.5% of the fund’s total assets managed as well as a very miniscule 0.01% of the company’s shares outstanding.
Over the past quarter the Hennessey Japan Fund did not alter their position in the company. The last move the fund made was in the second quarter of 2014 when the portfolio made sells of the company’s stock. From their last move the price per share has increased approximately 9.6%.
Hennessey Japan’s historical holding history:
Kao Corporation, together with its subsidiaries, produces and markets beauty care, health care and fabric and home care products and chemicals.
Kao’s historical revenue and net income:
The analysis on Kao reports that the company has enough cash to cover all of its debt, its operating
The Peter Lynch Chart suggests that the company is currently overvalued:
Kao has a market cap of ¥2066.9 billion. Its shares are currently trading at around ¥3998 with a P/E ratio of 26.60, a P/S ratio of 1.51 and a P/B ratio of 3.28. The company currently holds a dividend yield of 1.31%. The company had an annual average earnings growth of 2.90% over the past five years.
Nidec (TSE:6594)
Hennessy’s third largest holding is in Nidec Corporation. The fund holds on to 38,700 shares of the company’s stock. Its holding in the company represents 0.1% of the company’s shares outstanding and 6.2% of their total assets managed.
During the third quarter Hennessy did not alter their position in Nidec. The company has held shares in Nidec since 2013Q2, and since that initial buy the price per share is trading up about 120.4%.
Hennessy’s Japan Fund’s historical holding history:
Nidec is a global manufacturer of electric motors and a manufacturer of electronic machinery and components and other products. The company specializes in brushless DC motors.
Nidec’s historical revenue and net income:
The analysis on Nidec reports that the company’s Piotroski F-Score is high, its price is nearing a 10-year high, it has issued JPY158.9 billion of debt over the past three years and the company has seen an operating loss over the past three years.
The Peter Lynch Chart suggests that the company is currently overvalued:
Nidec Corporation has a market cap of ¥1960.96 billion. Its shares are currently trading at around ¥7045 with a P/E ratio of 34.10, a P/S ratio of 2.30 and a P/B ratio of 3.77. The company had an annual average earnings growth of 2% over the past ten years.
ASICS (TSE:7936)
The fund’s fourth largest position in ASICS where they hold on to 115,200 shares of the company’s stock. This position makes up for 6% of his total holdings as well as 0.06% of the company’s shares outstanding.
The fund also did not change their position in ASICS over the duration of the third quarter. During the second quarter the Hennessy Japan Fund (Trades, Portfolio) made a small sell of their stake and since that sell the price per share is up 16%.
Hennessy Japan’s historical holding history:
ASICS Corporation is a sports apparel company. The company is engaged in the manufacture and sales of sports and leisure goods.
ASICS’ historical revenue and net income:
The analysis on ASICS reports that the company’s dividend yield is near a 5-year low, its price is near a 10-year high and its asset growth is currently faster than its revenue growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
ASICS has a market cap of ¥466.59 billion. Its shares are currently trading at around ¥2371 with a P/E ratio of 27.90, a P/S ratio of 1.37 and a P/B ratio of 2.82. The company had an annual average earnings growth of 11.10% over the past five years.
MISUMI Group (TSE:9962)
The Japanese guru fund holds its fifth largest position in MISUMI Group. The fund holds on to a total of 74,700 shares of the company’s stock, representing 5.9% of the fund’s total portfolio holdings as well as 0.08% of the company’s shares outstanding.
Over the past quarter Hennessy increased their holdings 3.18% by purchasing a total of 2,300 shares of the company’s stock. The portfolio managers added these shares near the estimated average quarterly price of ¥3180 per share. From this average price the price per share has fallen a minor -0.5%.
Hennessy’s historical holding history:
MISUMI Group Inc.manufactures and sells shafts, bushes, linear guides, locating parts, pulleys, aluminum frames and stages , sells punches, dies, spring guides, ejector pins, core pins, guides and retainers.
MISUMI’s historical revenue and net income:
The analysis on MISUMI reports that the company’s Piotroski F-Score is high, it maintains enough cash to cover all of its debt and its price is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
MISUMI Group has a market cap of ¥287.9 billion. Its shares are currently trading at around ¥3095 with a P/E ratio of 23.10 and a P/S ratio of 1.58. The company had an annual average earnings growth of 19.50% over the past five years.
Check out Hennessy Japan Fund’s complete third quarter portfolio here.
