From Bloomberg, July 3:
- Alma Eikoh pares stake in Renesas, adds Nissin Foods, Kao
- Overweight defense-related companies such as Mitsubishi Heavy
A top-performing equity fund is pocketing gains on Japanese chipmakers to buy shares left behind during the market’s world-beating rally.
The Alma Eikoh Japan Large Cap Equity fund, which is outperforming 99% of peers this year, has cut its position in Renesas Electronics Corp. by almost a third over the past month as the stock more than doubled in value year to date, according to James Pulsford, who co-manages the ¥126.6 billion ($875 million) fund. Some of that money went into “high quality” defensive names such as noodle maker Nissin Foods Holdings Co. and soap producer Kao Corp.
“We’ve recycled some of the things that have done well into some of the recent poor performers with strong fundamentals,” said Pulsford, a London-based fund manager at Alma Capital.
Pulsford’s view may serve as a reality check for those investors betting that tech shares will continue to surge amid an artificial intelligence boom that has helped lift Japan’s stock market to its highest level in 33 years. His take on consumer-staple stocks comes as analysts at Goldman Sachs Group Inc. recommend investors underweight sectors including food, energy, construction and pharmaceuticals....
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Doing the opposite of Goldman's recommendations has been known to be highly profitable.
