Historically, equities have delivered the highest long-term returns among asset classes. It is well established that long-term equity investment mitigates short-term market volatility. Accordingly, we position an Equity Long Strategy as the foundation of our portfolio, aiming to capture broad market beta while enhancing returns through disciplined alpha generation via stock selection.

However, market timing remains challenging, and even exceptional stock pickers can suffer prolonged drawdowns — as evidenced by investors in the MSCI World Index in 2007, who had to wait until 2013 to fully recover from the Global Financial Crisis. To mitigate short-term volatility and timing risks, we complement our core equity exposure with Event-Driven and Arbitrage Strategies, which offer low correlation to market beta and contribute to a more stable return profile.

Leveraging Management Team’s experience in developing and implementing these strategies since 2007, we have built a diversified, technology-driven investment platform. Despite our modest AUM, we have invested heavily in financial technology infrastructure — including Bloomberg Professional, automation tools, and AI technologies — enabling us to maximize opportunity capture while maintaining a lean, cost-efficient operation.

Our Event-Driven Strategy seeks to capture investment opportunities arising from corporate actions and special situations, such as mergers and acquisitions (M&A), restructurings, IPOs, public offerings, tender offers (TOBs), and share buybacks. These events often create temporary pricing inefficiencies that disciplined investors can exploit for attractive, uncorrelated returns.

With a deep understanding of deal dynamics, regulatory frameworks, and market behavior, we combine fundamental analysis with transaction-specific insights to systematically identify and evaluate opportunities. Our process emphasizes rigorous risk analysis to isolate attractive risk-adjusted returns while minimizing exposure to market beta.

Yusuke, a member of our Management Team, has been executing event-driven strategies since his university years, supported by both academic research and practical experience. His dissertations, “Risk and Return of Risk Arbitrage and Active Portfolio Management” and “Determinants of M&A Premium” form the analytical backbone of our approach. Drawing on more than a decade of hands-on experience, we apply active portfolio management and disciplined risk controls to consistently seek alpha across various market environments.

We maintain flexibility to allocate capital across a broad range of opportunistic hedge fund strategies, dynamically adjusting to evolving market conditions. These may include credit, macro, volatility arbitrage, and sector-specific investments where we identify asymmetric risk-reward profiles. This adaptive approach enhances portfolio agility and allows us to capture value from market dislocations and emerging themes across asset classes.

We selectively pursue opportunistic strategies when market conditions are favorable. These include stochastic arbitrage, convertible arbitrage, systematic short bias, and strategies that exploit market anomalies such as behavioral inefficiencies. These approaches are deployed based on judgment and relative value assessments, rather than through constant allocation.

Each opportunity is rigorously evaluated with strict attention to risk management and liquidity considerations to ensure alignment with our long-term, risk-adjusted return objectives.

Our investment process integrates multiple quantitative models designed to detect patterns, inefficiencies, and momentum across global markets. These models span statistical model, factor analysis, and machine learning, offering a data-driven lens through which we identify investment signals. When combined, they provide robust, diversified insights that complement our fundamental analysis.

We complement our opportunistic strategies with disciplined financial analysis. While we utilize advanced analytics, traditional fundamentals remain core to our approach. We conduct in-depth assessments of balance sheets, earnings quality, competitive positioning, and industry dynamics to develop a robust view of intrinsic value versus market price. Our objective is to invest in the best companies while ensuring that the price we pay offers a meaningful margin of safety. This rigorous process anchors our investment decisions and supports prudent risk management and capital allocation.

We leverage cutting-edge AI technologies to enhance our investment decision-making. Using neural networks, deep learning, and simplified human language models, we process vast datasets with speed and precision. Our natural language processing synthesizes market sentiment, news flow, and alternative data, while machine learning algorithms refine predictive models and identify patterns invisible to traditional analysis. These AI tools empower us to uncover hidden opportunities and improve forecasting accuracy, all while keeping human judgment and fundamental insights at the core of our investment process.

Our Equity Long Strategy is built on active management, with a primary focus on Japanese equities, complemented by selective exposure to developed market equities globally. We seek to capture long-term capital appreciation by combining bottom-up stock selection with top-down thematic positioning aligned with macroeconomic and structural trends.  

In Japan, we leverage deep local market knowledge to identify undervalued companies, transformation opportunities, and structural growth themes. Where appropriate, we engage directly with management teams through constructive dialogue to encourage improvements in governance, operational efficiency, and capital allocation, with the objective of enhancing corporate value for the benefit of all stakeholders. Engagement is one of several tools we employ, alongside traditional long-term investment in undervalued and promising businesses as a silent shareholder. 

Globally, we pursue a similar philosophy, selectively allocating to developed market equities that offer diversification benefits or exposure to strategic, macro-driven investment themes such as technological innovation, demographic evolution, and supply chain realignment. These investments are typically executed as passive shareholders without direct engagement, focusing instead on structural value opportunities and long-term capital appreciation. 

Overall, our approach emphasizes rigorous fundamental research, dynamic macroeconomic insights, flexible positioning, and disciplined risk management to deliver sustainable, risk-adjusted returns across different market environments.