This quarter’s strong performance, with a NAV return of +9.5% vs the MSCI Small Cap Japan’s +0.6%, was particularly pleasing after we added to positions which suffered from weakness over the summer. Six of the top ten contributors this quarter were amongst the largest detractors last quarter. Toshiba Plant, for example, was this quarter’s largest contributor with a share price increase of +48% following a fall of -10% last quarter, and Teikoku Sen-i was the third largest contributor this quarter (+34%; -15% as the largest detractor previously). While only a small sample size, this highlights the benefits of taking advantage of short-term price declines which increase the discrepancies between fundamental value and the market value of our investments.
AVI Japan Opportunity Trust p.l.c is referred to as ‘AJOT’ throughout the website. AJOT’s investment managers, Asset Value Investors are referred to as ‘AVI’