Investment Philosophy:
We believe that long-term value creation in Japan lies at the intersection of strong corporate fundamentals and effective capital market communication. We observe that corporate value is driven not only by cash flow generation but also by effective management of the cost of capital. Many Japanese companies, however, tend to underestimate the importance of controlling volatility, which is a key component of that cost. Through constructive engagement, we seek to align management decisions with shareholder value creation while maintaining respect for each company’s unique culture and circumstances.
Firm Overview:
Nezu Capital is an independent Tokyo-based investment management firm established in 2015.The firm manages the Nezu Engagement Fund, a Japan-focused public equity fund that aims to generate superior long-term returns through active ownership and dialogue with listed companies. Our clients include institutional investors and family offices seeking differentiated exposure to Japan through engagement-driven investing. By combining deep local relationships with global investment discipline, Nezu Capital serves as a bridge between international capital and Japan’s evolving corporate sector.
Investment Process:
Our process combines fundamental research, engagement design, and disciplined portfolio construction. Identification: We screen for undervalued listed companies with clear potential for re-rating through governance, capital allocation, or communication improvements. Engagement Planning: For each target, we design a structured engagement agenda with measurable objectives and market catalysts. Execution: We conduct direct dialogue with management, supported by data-driven analysis, while maintaining a constructive and confidential relationship. Evaluation: We continuously monitor both fundamental progress and market response to engagement milestones. This systematic approach allows us to generate value through both operational improvement and multiple expansion.
Firm Strength:
Nezu Capital’s strength lies in its deep access to Japanese corporates, decades of investment experience, and proven ability to translate engagement into market value. Our team consists of two highly experienced portfolio managers and analysts with multi-industry coverage experience. This combination of boardroom access, market insight, and analytical discipline enables us to conduct engagements that are both strategic and credible. Unlike conventional activists or consultants, our approach is collaborative, focused, and tailored to each company’s circumstances—delivering tangible results without confrontation.