We also exited robotic gear company Harmonic Drive Systems (TSE:6324). This was another long-term holding for the Fund that had contributed significantly over the years. We believe orders for robotics reached a cyclical peak last year and expect growth momentum to slow going forward. Additionally, we saw new participants in the robotics gears industry and were concerned that increased competition might erode the company's future pricing power.
From Matthews Japan Fund (Trades, Portfolio) third-quarter 2018 shareholder commentary.
