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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of