Japan Small Cap Equity: Alpha Opportunity in a Revitalizing Economy

Japanese small caps suffer from the “too many but too little” syndrome – there are too many companies in the investible universe that are under-researched. Growth is often expensive in large cap, but not necessarily in small cap due to an abundance of choices and mispricing opportunities.

For investors looking to take advantage of this alpha opportunity of a revitalized Japan with modest risk, an active small caps strategy offers a long runway for growth.

Investment Opportunity

A Sweet Spot for Alpha
A Sweet Spot for Alpha
Japanese small caps have been largely overlooked in favor of large cap household names. But they have outperformed the broader market for most of the past 10 years and were less volatile than large caps.

Economic Trends to Watch

Japan’s Economy Looks Set for the Eighth Year of Expansion
Japan’s potential growth rate is back in sight due to faster government and consumer spending growth, as well as supportive monetary policy.