Hawaiian Manager Looks For Japanese Small-Cap Treasures

Jan 30 2007 | 2:49pm ET

Honolulu-based Bellamy Fund Management on Jan. 15 launched the Takarajima Fund, a Caymans-domiciled Japanese small-cap activist hedge fund, with less than $10 million in initial equity. 

Firm founder Jason Bellamy said he sees tremendous opportunities within the Japanese small-cap space. “They’re mispriced and under-researched, and there are a lot of companies that are not necessarily distressed but could do well with a bit of cash injection,” he said.

Bellamy said his strategy differs from other activist shops such as Steel Partners because “we’re not hostile takeover artists and our targeted companies are much smaller. And because they’re smaller, we can go in and take a chunk of the company, such as 10% of its market cap, and create a significant presence overnight. We look for share placements and moving price convertible bonds with a put option that protects us from the downside, which is the lack of liquidity.”

The new vehicle will look to exit its investments within three to 12 months, added Bellamy.

The Takarajima Fund charges a 2% management fee and 20% performance fee, with a ¥10 million (US$82,000) minimum investment requirement.

Bellamy also mentioned that he would like to work with other sub-advisors in Japan who want to create their own fund structures in Hawaii and the Caymans, and is currently negotiating with a Japan equity long/short manager and a U.S.-based quantitative fund manager to that end. 

Prior to forming his own firm last October, Bellamy served as private banker for the Bank of Hawaii and worked for Tokyo-based Myojo Asset Management, a Japanese long/short shop.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.