Hideto Fujino, a former Goldman Sachs Group Inc. (GS) manager whose independent fund is ranked one of Japan’s best, is beating peers by buying carparks and women’s gyms and shunning companies in the Nikkei 225 Stock Average (NKY), which has lost 80 percent since 1989.
Stocks such as Park24 Co. (4666) and women’s fitness-club operator Koshidaka Holdings Co. have helped Fujino’s 2.3 billion yen ($29.3 million) Hifumi Fund return 31 percent since October 2008, compared with a 23 percent drop on the Nikkei 225 and a 9 percent loss for the Tokyo Stock Exchange’s small shares index. The mutual fund, which includes eight companies from the Nikkei 225 in its 58-stock portfolio, was named Japan’s best this year by Rating & Investment Information Inc., the country’s top rating company.
“Investing in the big Japanese companies is a real gamble because they are so exposed to the volatile global economy, especially recently,” said Fujino, 45, chief investment officer at Rheos Capital Works Inc. in Tokyo. “If you look at small stocks, you can find a lot of companies where decision-making is fast and the focus is on long-term growth.”
Read the rest of the story: Ex-Goldman Manager, Ranked Japan’s Best, Avoids Nikkei.