Report by Churchill Research

Since inception, Mike Churchill’s Japan II portfolio has outperformed the Nikkei by 23.6 percentage points - the portfolio was started in Nov 2020 with the idea of screening the entire Japanese equity universe once a year. Mike picks 100-or-so names for the first cut, then narrows that down to the 30 most attractive. Every year the portfolio is completely sold off and re-stocked with those 30 best ideas. Top performers last year included Nippon Steel Trading, Nakayama Steel and Torishima Pump Mfg. One stock he is particularly keen on is Shinnihon Corp, describing the homebuilder as “so insanely cheap it's ridiculous”. TP ¥1,235 (70% upside).