Japan’s ongoing boom in mergers and acquisitions is helping to generate superior returns this year for a small-cap fund that focuses on companies that few equity analysts cover.
Managed by Massimo Baggiani and Andrea Andreis in London, the NicheJungle Japanese Orphan Companies SDG Fund has exited positions in 20 companies at a profit, with half of these firms taken over since the fund was launched in 2022. The supply of targets is likely to increase as takeover bids stay on track to reach a record this year amid growing pressure on companies to boost shareholder returns.
“Every company in the portfolio can be a takeover target,” Baggiani said. “The quality of the small Japanese companies is incredible.”
