Insights from the Latest N-PORT Filing for Q3 2024
Matthews Japan Fund (Trades, Portfolio), a stalwart in Japanese equity investments, has recently disclosed its portfolio adjustments for the third quarter of 2024. Established on December 31, 1998, the fund is committed to long-term capital appreciation, focusing primarily on Japanese stocks. Employing a bottom-up, fundamental investment philosophy, Matthews Japan Fund (Trades, Portfolio) aims to uncover undervalued companies with strong growth potential. The fund's strategy is characterized by active management, a long-term focus on Asia, rigorous bottom-up research, and a broad spectrum of Asia investment strategies.
Summary of New Buys
During the third quarter of 2024, Matthews Japan Fund (Trades, Portfolio) expanded its portfolio by adding 12 new stocks. Noteworthy new acquisitions include:
- Advantest Corp (TSE:6857, Financial), purchasing 320,300 shares, making up 2.16% of the portfolio, valued at ¥15.06 billion.
- Mitsubishi Heavy Industries Ltd (NGO:7011, Financial), with 929,400 shares, representing about 2% of the portfolio, valued at ¥13.89 billion.
- Miura Co Ltd (TSE:6005, Financial), acquiring 448,100 shares, accounting for 1.59% of the portfolio, valued at ¥11.05 billion.
Key Position Increases
The fund also increased its stakes in 18 existing holdings, with significant boosts in:
- Sony Group Corp (TSE:6758, Financial), adding 359,500 shares, bringing the total to 1,563,500 shares. This adjustment increased the share count by 29.86%, impacting the portfolio by 1%, with a total value of ¥30.38 billion.
- Hikari Tsushin Inc (TSE:9435, Financial), adding 25,200 shares, for a total of 40,200 shares. This represents a 168% increase in share count, valued at ¥8.95 billion.
Summary of Sold Out Positions
The fund exited nine positions entirely in this quarter, including:
- Tokyo Electron Ltd (TSE:8035, Financial), selling all 127,300 shares, which had a -4.23% impact on the portfolio.
- Mitsui Chemicals Inc (TSE:4183, Financial), liquidating all 393,900 shares, resulting in a -1.66% portfolio impact.
Key Position Reductions
Reductions were made in 17 stocks, with the most significant being:
- Recruit Holdings Co Ltd (TSE:6098, Financial), reduced by 169,900 shares, a -37.94% decrease, impacting the portfolio by -1.39%. The stock traded at an average price of ¥8700.68 during the quarter and has returned 8.56% over the past three months and 53.76% year-to-date.
- Mitsubishi UFJ Financial Group Inc (TSE:8306, Financial), reduced by 822,100 shares, a -31.51% decrease, impacting the portfolio by -1.35%. The stock traded at an average price of ¥1576.06 during the quarter and has returned -4.47% over the past three months and 37.85% year-to-date.
Portfolio Overview
As of the third quarter of 2024, Matthews Japan Fund (Trades, Portfolio)'s portfolio comprised 48 stocks. The top holdings included 5% in Keyence Corp (TSE:6861, Financial), 4.66% in Hitachi Ltd (TSE:6501, Financial), 4.47% in Shin-Etsu Chemical Co Ltd (TSE:4063, Financial), 4.36% in Sony Group Corp (TSE:6758, Financial), and 4.24% in ORIX Corp (TSE:8591, Financial). The holdings are predominantly concentrated in nine industries: Industrials, Technology, Consumer Cyclical, Financial Services, Basic Materials, Healthcare, Consumer Defensive, Communication Services, and Real Estate.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
