Thu 12 Oct 2023 - 10:30 BST

Asymmetric focuses on early identification of secular growth ideas, uncovering hidden gems, industry changes, disruption risks, and large restructuring plays

Hitachi (6501) - Asymmetric have been consistently recommending Hitachi for over a decade as it has been refocussing and divesting non-core businesses. This reorganisation is now largely complete and Asymmetric expect to see a rapid improvement in margins going forward.

Kyudenko (1959) - Despite a surge in orders since H2 last year, an anticipated step up in earnings and increasing shareholder returns (cash is >¥100bn vs. ¥300bn MCap), the stock trades on a forward PER of <10x - a low valuation for the obvious positives.

Japan Strategy - Asymmetric argue that Japan's central bank is being heavily influenced by the government which wants to keep its refinancing cost low by effectively rigging interest rates. Asymmetric cannot see these interventionist policies prevailing as the depreciating Japanese currency will likely force a monetary policy change towards normalisation by year-end.