Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information.
Sunday, 11 December 2016
Last updated 1 day ago
Apr 6 2009 | 2:04am ET
Just months after abandoning a highly-publicized activist battle in Japan, The Children’s Investment Fund is switching strategies in the country.
The London-based hedge fund has reported about US$1.2 billion in short positions in Japanese stocks, including some of the country’s biggest names, Bloomberg News reports. According to the filings, required under the short-selling restrictions Japan imposed in October alongside the world’s other major financial powers, TCI is shorting 13 Japanese stocks.
Among the companies TCI is betting against are Toshiba Corp. (4.2% short interest), Sharp Corp. (1.5% short interest), Mizuho Financial (0.9% short interest), Sony Corp. (0.7% short interest), Mitsubishi Heavy Industries (0.6% short interest), Olympus Corp. (0.3% short interest) and Bridgestone Corp. (0.2% short interest).
Last year, TCI lost a proxy battle with Electric Power Development Co., Japan’s largest electric utility. The hedge fund took a US$130 million loss in October when it dumped its stake in the company, better known as J-Power.
All told, TCI posted a 43% loss last year.