Regarding new holdings, we initiated a position in electronic-component maker TDK (TSE:6762, Financial). The company's recent driver of earnings was the batteries business, where it commanded a leadership position in high-end smartphone batteries and continued to expand market share despite sluggish overall smartphone-unit growth. As the 5G era approaches, we believe TDK's economic moat of higher density per area, design and safety capabilities will increase its value proposition.
From Matthews Japan Fund (Trades, Portfolio)s' fourth-quarter 2019 commentary.
