How Japanese Hedge Funds Are Aiming Small for Big Returns
- Simplex fund returns 29% in first half by targeting small caps
- Japan-focused funds are world’s third-best performers so far
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Aiming small is helping some Japanese hedge funds deliver outsize returns.
Simplex Asset Management Co.’s Japan Lower Market Strategy fund, which scours the nation’s three regional exchanges for small-cap stocks, returned 29 percent in the first six months of the year. Eschewing big-name companies also helped Sparx Group Co.’s Value Impact Fund gain 19 percent in the first half, while Strategic Capital Inc.’s activist fund added 15 percent, according to the firms.