Acquisition International - Issue 6 2018 33 Arcus Investment Limited is a boutique asset management firm that has been specialising in value investing in Japan equities since 1998. Following their recent success in Acquisition Intl’s Fund Awards, where they received the accolade Best Japanese Equities Asset Manager 2018, Arcus provides us with an insight into the firm innovative ways. stablished in 1998, Arcus Investment Limited is a boutique asset management firm that has been specialising in value investing in Japan equities. The firm has three offices globally: London (Arcus Investment Limited – “AIL”), Hong Kong (Arcus Investment Asia Limited – “AIAL”), Tokyo (Arcus Research Limited, Japan – “ARL”) (collectively referred to as “Arcus” or the “Arcus Group”). Arcus manages both long-only and long/short funds, with a team of just under 20 people, who are all highly committed to generating long term returns for global investors. Arcus’ clients are typically global institutional and professional investors (including pension funds, insurance companies, fund of funds, family offices, and high net worth individuals). In addition, Arcus co-invest our own assets in our funds. Looking at how we differentiate ourselves from competitors, this is achieved through our deep value investing. This means that we look for stocks priced at a large discount to intrinsic value, which often entails taking a somewhat contrarian view of market trends. We adopt a long-term investment horizon and we are disciplined in rigorously maintaining our value principles whether market conditions are favourable or adverse. For almost 20 years, we have been consistent in our investment philosophy across all our strategies. Additionally, we have in-depth knowledge of Japan and of the companies we invest into. Contact: Antonella Gasco Company: Arcus Investment Limited, 28 King Street, 5th Floor, London, EC2V 8EH, UK Telephone: 0203 540 9500 Email:
[email protected] Web Address: www.arcusinvest.com Seizing Opportunities E 1802ME01 As for our approach to choosing both staff and clients, we like working with people who share our long-term view on nourishing a business, that value transparency, but also remain patient and committed when market events create a headwind for the performance of our funds. People who join our team, tend to stay with us for many years. When looking at the challenges within the industry, one of the biggest challenge in the past few years has been the popularity of passive funds. Some investors seem to prefer gaining exposure to a market, for example Japan, via ETFs or other passive funds, and they therefore dismiss the potential long-term value generation of active managers. In addition to this, we expect that value investment will continue to make a comeback, as well as some investors reassessing their view of active managers and on the advantages of holding long/ short strategies in a portfolio. On the other hand, as for how to be successful within the industry, in our experience, solid returns and attentive investor relations have proven to be successful in maintaining good relationships with our clients for the past two decades. Furthermore, keeping a consistent and transparent investment approach since our start has shown investors the continuity in our investment style, and comfort that we would not make sudden drastic changes that may affect their expectations. Looking ahead to what the future holds, as value has been underperforming globally in the past few years, a number of opportunities and mispriced companies have arisen not only in Japan, but also across Asia, Europe and North America. Moving forward, we have already started seizing this opportunity by adding non-Japan stocks to our Arcus Genseki Fund (in accordance with the Prospectus limits). Furthermore, AIAL has partnered with another Asian manager to share knowledge on Asian equities and to gain exposure to the broader Asia region. “...keeping a consistent and transparent investment approach since our start has shown investors the continuity in our investment style, and comfort that we would not make sudden drastic changes that may affect their expectations.”