June 2013
Japanese Small Cap Equity Strategy
Hiromitsu Daimon, CMA, CIIA, Senior Portfolio Manager
2013 Team Leader of Japan Small Cap Team (from July 1st)
2006
Senior Portfolio Manager
2003
Portfolio Manager, Small/Mid Cap Investment Trust Team, Equity Investment Dept.
2001
Portfolio Manager, Institutional Clients Investment Dept.
1996
Analyst, Corporate Research Dept.
1994
Trader, Equity Trading Dept
1992
Joined NAM, Assistant Marketing Executive, Product Services Dept.
2009
MBA, Hitotsubashi University
1992
B.A. in Economics, Chuo University
Portfolio Manager of the Strategy
Makoto Ito, CMA, Portfolio Manager
2008
Portfolio Manager, Equity Investment Dept.
2006
Analyst, Corporate Research Dept., Nomura Asset Management Co., Ltd.
2002
M.S. in Science, Tokyo University
Joined Mitsubishi UFJ Asset Management Co., Ltd. (predecessor UFJ Partners Asset
Management Co., Ltd.)
Supporting Portfolio Manager of the Strategy
Our Philosophy
The markets are not fully efficient
The Japanese small equity market is especially inefficient because
¾
The lack of sell-side coverage. So little information is available.
¾
Only so much research is done by investors
Valuation anomalies exist and can be exploited through active
Our Approach
To combine Quantitative and Qualitative Assessment, through a bottom up
approach
Perform extensive fundamental research to identify stocks which hold
potential
Focus on fundamental strength and improvement potential
¾
Examples: Niche top, Greater market share, Premium redemption to shareholders, or
Growth, etc.
¾
Screening
¾
Quantitative Approach
(by Value Indicators)
PER, PBR, PCFR, etc.
¾
Fundamental Research done from
Financial analysis & Company
Visits
z
Niche top
z
Greater market share
z
Premium redemption to
shareholders, Growth, etc.
¾
Adjustment on Exposure by
Expected return & conviction,
Liquidity, or Macro/Market
Environment , etc.
Investment Process ( Outline )
Investment Universe Around 3400 stocks
z
Mainly
，
Russell/Nomura Small Cap 1100
Universe 1 500 - 600 stocks
Universe 2 100 – 200 stocks
¾
Quantitative Screening by Value Indicators
Investment Process （Step 1） – Universe 1
Investment Universe is Around 3400 stocks
z
Mainly, Russell/Nomura Small Cap 1100
Universe 1 500 - 600 stocks
P/B ratio
OR
P/E ratio
OR
PCFR
OR
Dividend Yield
OR
EV/EBITDA
¾
Fundamental Research
（
Financial analysis & Company Visits)
Investment Process
（
Step 2
）
– Universe 2
Universe 1 500 - 600 stocks
Niche top
Greater market share
How Shareholder
Value is provided
Growth
moreover
Realize Shareholder Value
Universe 2 100 – 200 stocks
Investment Process
（
Step 3
）
–
Portfolio
Universe 2 100 – 200 stocks
Portfolio
¾
Exposure
Expected return and
conviction
Macro and Market
Environment
Liquidity
or
Name
Title
As of April 1, 2013
Name
Title
with NAM
Years of Experience
Investment
and
Research
with NAM
Years of Experience
Investment
and
Research
Yasukazu Nakaguma, CMA
Managing Director
26
15
■
Sector Analyst
MATERIAL TEAM (3)
Mitsuhiro Kimura, CMA
Senior Analyst
21
22
Tsuyoshi Taniguchi
Senior Analyst
19
11
Akio Ohata, CMA
Senior Analyst
15
8
ASSEMBLY TEAM (6)
Shigeru Aiba, CMA
Senior Analyst
26
14
Mitsuhiro Iso, CMA
Senior Analyst
12
10
Yoshinori Eguchi, CMA
Senior Analyst
14
9
Toshihisa Gamou, CMA
Analyst
8
9
Kosuke Shiotsuki, CMA
Assistant Analyst
2
5
Yunfei Zheng
Assistant Analyst
1
1
CONSUMER TEAM (5)
Eiji Ko, CMA
Senior Analyst
19
21
Yoshiyuki Inagaki, CMA
Senior Analyst
27
15
Kohei Oba, CMA
Analyst
7
2
Yuta Amaike, CMA, CFA
Assistant Analyst
6
6
Ying Lu, CMA
Assistant Analyst
4
4
INFRASTRUCTURE TEAM (4)
Hideichiro Nishimura, CMA
Senior Analyst
23
15
Makoto Murahashi
Senior Analyst
23
6
Hidetsugu Hara, CMA
Senior Analyst
17
9
Eiji Sakimura, CMA
Analyst 12
6
■
Small-cap Analyst
SMALL-CAP TEAM (3)
Tomohiko Kinugawa, CMA
Senior Analyst
25
17
Yuta Sakurai, CMA
Senior Analyst
18
<1
Go Tabata, CMA
Senior Analyst
15
13
■
Corporate Governance Specialist
Hideaki Takamoto , CMA
Senior Analyst
16
20
Naoki Iwata, CMA
Senior Analyst
31
17
Yoshitsugu Tanaka , CMA
Analyst
10
12
Tomoko Yamaguchi, CMA
Assistant Analyst
3
22
