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In 2016, Marc and Gabriel launched the Japan Deep Value Fund from Spain without much experience investing in Japan. In fact, they had never set foot. Mind you, this was against decades of overwhelmingly negative sentiment. Today, their portfolio holds companies trading at 2x EV/EBITDA, sitting on more cash than their market caps, and many haven’t been touched by foreign investors.

In this episode, Marc joins us to unpack the once-in-a-generation thesis that drew him to Japan and why he calls it “the easiest decision of my life”.

We dig into:

• Why they decided to launch a dedicated Japan Deep Value fund

• The “no English filings = mispriced asset” arbitrage that powered his fund and his secret weapon to overcome cultural barriers

• Why Japanese Accounting standards are underrated

• The 2023 inflection point: how Hiromi Yamaji quietly engineered the biggest revolution in the Tokyo Stock Exchange in decades

• Why they think the next 10–20 years of Japanese small caps could mirror US markets 50 years ago

• What they’ve seen over the last 10 years and their evolution as a Japan Investor: Going from pure deep value into a diversified portfolio of value and growth

• Stocks that excite them most today, including Tsubakimoto Kogyo: a 100-year-old trading company hiding in plain sight and heir bullishness on Private equity and consolidators

This is a must listen for those who are interested in investing in Japan but are reluctant due to the language and cultural barriers. He talks about how he’s gotten comfortable and overcoming those challenges.

Finally a special thank you to Marc for being willing to do this interview in English which isn’t his first language and because we couldn’t do it in Spanish…!

In addition to Spotify, we are now available on all major streaming platforms including Amazon music, Apple Podcast, Youtube and many others.

[Transcript below]

Transcript

Disclaimer: Before we dive in, a brief but important disclaimer Made in Japan is an independent podcast co-hosted by Made in Japan and Ben Finser, a portfolio manager at Fin Capital Management. Everything you hear on this show, including all opinions, analysis and guest commentary, is provided solely for informational and educational purposes.

Nothing on this podcast constitutes investment advice, a solicitation, or a recommendation to buy or sell any security or financial instrument. The views expressed by any host or guests are entirely their own and do not represent the positions, strategies, or views of Made in Japan or Fin Capital Management. Its affiliates, its funds, or its investors.

Investing carries risk, including the possible loss of principal. Past performance is not indicative of future results. Please consult a qualified financial advisor before making any investment decision. And with that, let’s get into it.

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The First episode of the Made in Japan podcast is finally out!

You can listen here or on [Spotify] It will also be made available on Amazon Music and Apple Podcasts soon!

The transcript can be accessed here.

We felt our interview with Philip was going to be the perfect first episode as an introduction to Japanese markets.

Over the last 2 decades, he’s seen the country as a lawyer, investment banker and now an investor. He’s worked with truly the pioneers of Japanese activist investing like Yoshiaki Murakami of M&A Consulting and Seth Fischer of Oasis.
Through his adventures not just in Japan but in East Asia, he has so many interesting stories to tell!

We learnt
⚪︎Why Activism Struggled in the past and why that’s changing
⚪︎Why Activism and Japan, is still a huge opportunity today
⚪︎Some of the misconceptions of Activism
⚪︎Japan’s unique business culture and how Japanese companies think about M&A
⚪︎And some of his favourite things to do in Japan!

We still have a lot to improve on so we’d love to hear your feedback, thoughts or suggestions if you have any!! Or even any guests that you’d want us to interview!

We hope you enjoy this conversation. If you liked it and want to hear more, we would really appreciate it if you like this post, share and subscribe!

Thank you for your interest and support !!
Finally, a special thank you to the people around us who’s been so encouraging and supportive for this project. Ben and I still have no idea where this’ll go but we hope to bring some unique perspectives!