The Hennessy Japan Fund (Trades, Portfolio) pursues long-term capital appreciation by investing four-fifths of its net assets in Japanese companies. It hasn’t bought any new stakes or sold out any of its old ones since early this year, but it added to 16 existing stakes in the quarter ended July 31, including some of the most valuable in its portfolio.
The Fund’s most noteworthy addition was its purchase of 16,700 shares of Shimano Inc. (TSE:7309, Financial), a Japanese maker of products for leisure activities, for an average price of ¥17251.2 (about $144.04 in U.S. currency) per share. The transaction, which had a 1.99% impact on the Fund’s portfolio, raised the Fund’s stake in Shimano by more than 57%.
Shimano has a market cap of $1.54 trillion and an enterprise value of $1.37 trillion. It has a P/E of 22.9, a P/B of 4.3 and a P/S of 4.1.
The Fund increased its stake in Kubota Corp. (TSE:6326, Financial), an Osaka, Japan-based maker of tractors and heavy equipment, by more than 43%. The Fund bought 116,000 shares for an average price of ¥2000.43 (approximately $16.70 in American money) per share. The purchase had a 1.71% impact on the Fund’s portfolio.
Kubota has a market cap of $1.97 trillion and an enterprise value of $2.58 trillion. It has a P/E of 13.5, a P/B of 1.7 and a P/S of 1.2.
Kubota is the eighth-most valuable stake in the Fund’s portfolio.
The Fund acquired 29,800 shares of Daikin Industries Ltd. (TSE:6367, Financial), a Japanese electrical equipment company, for an average price of ¥8841.28 (roughly $73.82 in U.S. dollars) per share. The deal raised the Fund’s stake by nearly 47% and had an impact of 1.66% on the Fund’s portfolio.
Daikin Industries has a market cap of $1.92 trillion and an enterprise value of $2.3 trillion. It has a P/E of 15.8, a P/B of 1.8 and a P/S of 1.0. Matthews Japan Fund (Trades, Portfolio), T. Rowe Price Japan Fund (Trades, Portfolio) and Signature Select Canadian Fund (Trades, Portfolio) have shares of Daikin Industries in their portfolios.
The Fund increased its stake in Isuzu Motors Ltd. (TSE:7202, Financial), a Tokyo-based maker of vehicles and diesel engines, by nearly 38%. The Fund bought 133,100 shares for an average price of ¥1614.43 (about $13.48 in American currency) per share. The transaction had an impact of 1.58% on the Fund’s portfolio.
Isuzu has a market cap of $965.11 billion and an enterprise value of $993.25 billion. It has a P/E of 7.4, a P/B of 1.3 and a P/S of 0.5. T. Rowe Price Japan Fund (Trades, Portfolio) has shares of Isuzu in its portfolio.
Isuzu is the fifth-most valuable stake in the Fund’s portfolio.
The Fund boosted its stake in Keyence Corp. (TSE:6861, Financial), an Osaka, Japan-based electronics company, by nearly 23% with the purchase of 2,400 shares for an average price of ¥66232 (approximately $553.01 in U.S. money) per share. The deal had a 1.04% impact on the Fund’s portfolio.
Keyence has a market cap of $3.09 trillion and an enterprise value of $2.45 trillion. It has a P/E of 25.5, a P/B of 3.3 and a P/S of 9.3. Matthews Japan Fund (Trades, Portfolio) and T. Rowe Price Japan Fund (Trades, Portfolio) have shares of Keyence in their portfolios.
Keyence is the 10th-most valuable stake in the Fund’s portfolio.
The Fund raised its stake in Terumo Corp. (TSE:4543), a Tokyo-based medical equipment company, by nearly 22% with the purchase of 46,300 shares for an average price of ¥2938.18 (roughly $24.53 in American dollars) per share. The purchase had a 1.03% impact on the Fund’s portfolio.
Terumo has a market cap of $1.23 trillion and an enterprise value of $1.28 trillion. It has a P/E of 28.1, a P/B of 2.1 and a P/S of 2.4.
Terumo is the fourth-most valuable stake in the Fund’s portfolio.
The Fund acquired 45,000 shares of Unicharm Corp. (TSE:8113), a Tokyo-based chemical company specializing in disposable diapers, feminine hygiene products and pet care products, for an average price of ¥2871.73 (about $23.98 in U.S. currency) per share. The transaction had a 0.93% impact on the Fund’s portfolio.
Unicharm has a market cap of $1.25 trillion and an enterprise value of $1.25 trillion. It has a P/E of 31.7, a P/B of 3.1 and a P/S of 1.8. Matthews Japan Fund (Trades, Portfolio) also has shares of Unicharm in its portfolio.
The Fund also added to its stakes in ASICS Corp. (TSE:7936), Sumitomo Mitsui Financial Group Inc. (TSE:8316), Kao Corp. (TSE:4452), FUJI Seal International Inc. (TSE:7864), Mitsubishi Corp. (TSE:8058), MISUMI Group Inc. (TSE:9962), Mani Inc. (TSE:7730), Rohto Pharmaceutical Co. Ltd. (TSE:4527) and Ryohin Keikaku Co. Ltd. (TSE:7453).
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