The Hennessy Japan Fund (Trades, Portfolio) established a position in Fast Retailing Co. Ltd. (TSE:9983, Financial) during the third quarter.
Managed by Masakazu Takeda and Yu Shimizu, the current portfolio is composed of 23 stocks. With a majority of the portfolio allocated to the industrial and consumer cyclical sectors, the fund seeks long-term capital appreciation by investing in Japanese companies.
The fund invested in 14,500 shares of Fast Retailing for an average price of 33,064.31 yen ($293.25) per share, giving it 2.11% portfolio space.
The Japanese apparel retailer has a market cap of 3.38 trillion yen; its shares were trading around 33,190 yen on Monday with a price-earnings (P/E) ratio of 34.9, a price-book (P/B) ratio of 4.63 and a price-sales (P/S) ratio of 1.85.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked the company’s financial strength 9 of 10 and its profitability and growth 8 of 10. The company’s trailing dividend yield and forward dividend yield are both 1.05%. The dividend payout ratio is 0.36.
With its purchase, the fund became the company’s only guru shareholder with 0.01% of outstanding shares.
During the quarter, the fund also increased its positions in Mitsubishi Corp. (TSE:8058, Financial), Sumitomo Mitsui Financial Group Inc. (TSE:8316, Financial), Rohto Pharmaceutical Co. Ltd. (TSE:4527, Financial), Daikin Industries Ltd. (TSE:6367, Financial), Nidec Corp. (TSE:6594) and several others. The fund did not reduce or exit any positions.
Disclosure: I do not own any stocks mentioned.
