TCI Launches New Activist Campaign In Japan

Jun 10 2011 | 12:02pm ET

Bowed but apparently unbroken, The Children's Investment Fund has launched a new activist campaign in Japan.

The London-based firm abandoned its activism in Asia two years ago, closing its office in Hong Kong and bidding farewell to its top executive in the region, John Ho. TCI—which had lost much of its appetite for activism altogether, and not just in Asia—had suffered several high-profile defeats, most notable in its battle with Japan's Electric Power Development Co.

Now, TCI has set its sights on Japan Tobacco, buying a 1% stake in the company. The hedge fund then took aim at Japan's finance ministry, which owns more than half of JT, to complain about the way the company is run.

TCI said that JT could double its stock price if it managed capital more efficiently. The hedge fund hopes that a cash-strapped Japanese government will be amenable to such an argument.

Some observers think that TCI will have no better luck this time around.

"They are going after the same people that will never listen," one investor in Japan told the Financial Times. Toshiaki Oguchi of Governance for Owners Japan concurred.

"It's not what they say, but the way they say it that was not accepted in Japan," he told the FT. "So, why are they doing it again?"


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note