We believe the best way to bet on the success of these reforms is simple: buy a portfolio of stocks trading at the lowest possible P/B multiple, prioritizing the quality of the assets on the balance sheet and the robustness of earnings and free cash flow generation, and then wait for the repricing. The playbook is crystal clear: as regulators drive... See more

Today, there are about 1,000 public companies in Japan trading at <1x book value (and about 200 trading below 0.5x book). The median company trading below 1x book has 15 years of net income crystallized on its balance sheet, primarily in a mix of cash, cross-shareholdings of other public equities, and real estate.