Japan’s J-Flag Readies Small-Cap Hedge Fund

Feb 5 2010 | 1:04pm ET

Buoyed by its success in the space, a young Japanese hedge fund firm is planning a new fund focusing on the country’s small-cap companies.

J-Flag Investment Co., which was founded and launched its first hedge fund in June, plans to employ the deploy the strategy behind its successful debut Simplex J-Flag Absolute Return Fund on Japanese companies with market capitalizations of less than ¥30 billion, Bloomberg News reports. Simplex J-Flag’s investments in small-cap funds helped drive its benchmark-beating performance, returning 8.5% over its first seven months, compared to the 4.5% jump in the Jasdaq Stock Index, which tracks small-cap stocks.

J-Flag founder Hisashi Osezawa, a former fund manager at JPMorgan Chase, said he hopes to launch the new fund in April or May with as much as ¥1 billion (US$11 million). Osezawa acknowledges that the fundraising environment is not exactly favorable, but told Bloomberg that he is in talks with several potential anchor investors of the new offshore vehicle.

“Capital-raising remains tough for start-ups like us, but in terms of performance, it was the best time to enter the market,” he said. “We are slowly starting to see some traction from overseas funds of funds now.”


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...