Insightful Portfolio Adjustments in Q3 2024 Highlight Growth Opportunities

The T. Rowe Price Japan Fund (Trades, Portfolio), known for its strategic investments in a diverse array of Japanese industries, has recently disclosed its N-PORT filing for the third quarter of 2024. This fund primarily targets companies poised for above-average, long-term earnings growth, investing at least 80% of its assets accordingly. The investment team emphasizes a growth style of investing, seeking companies with robust market positions, attractive niches, and strong management teams. These selections are made with the aim of achieving sustainable long-term earnings growth, focusing on financial health and market potential.

• Warning! GuruFocus has detected 8 Warning Signs with TSE:8001.

New Strategic Acquisitions

The T. Rowe Price Japan Fund (Trades, Portfolio) expanded its portfolio by adding 10 new stocks. Noteworthy among them are:

• Takeda Pharmaceutical Co Ltd (TSE:4502), with 239,500 shares, making up 2.4% of the portfolio and valued at 6.87 billion.
• Komatsu Ltd (TSE:6301), comprising 150,500 shares and representing about 1.46% of the portfolio, valued at 4.17 billion.
• Isuzu Motors Ltd (TSE:7202), with 222,000 shares, accounting for 1.05% of the portfolio and a total value of 2.99 billion.

Significant Position Increases

The fund also significantly increased its stakes in several companies, including:

• Nintendo Co Ltd (TSE:7974), which saw an addition of 46,600 shares, bringing the total to 158,100 shares. This adjustment represents a 41.79% increase in share count and a 0.87% impact on the current portfolio, totaling 8.44 billion.
• Resona Holdings Inc (TSE:8308), with an additional 187,800 shares, bringing the total to 925,200. This adjustment represents a 25.47% increase in share count, totaling 6.45 billion.

Complete Portfolio Exits

The fund completely exited positions in seven holdings during the third quarter of 2024, including:

• Daiichi Sankyo Co Ltd (TSE:4568), where all 161,800 shares were sold, impacting the portfolio by -1.91%.
• Suzuki Motor Corp (TSE:7269), with all 343,200 shares liquidated, causing a -1.36% impact on the portfolio.

Reductions in Key Holdings

Significant reductions were made in several stocks, notably:

• Keyence Corp (TSE:6861) was reduced by 10,600 shares, resulting in a -54.64% decrease in shares and a -1.6% impact on the portfolio. The stock traded at an average price of 67,965.6 during the quarter and has returned -7.12% over the past three months and 11.25% year-to-date.
• Tokyo Electron Ltd (TSE:8035) saw a reduction of 16,300 shares, a -46.18% decrease, impacting the portfolio by -1.22%. The stock traded at an average price of 28,094.4 during the quarter and has returned -24.32% over the past three months and 7.65% year-to-date.

Portfolio Overview and Sector Focus

As of the third quarter of 2024, the T. Rowe Price Japan Fund (Trades, Portfolio)'s portfolio included 71 stocks. The top holdings were 5.93% in ITOCHU Corp (TSE:8001), 5.34% in Sony Group Corp (TSE:6758), 4.52% in Hitachi Ltd (TSE:6501), 4.46% in Mitsubishi UFJ Financial Group Inc (TSE:8306), and 3.47% in Recruit Holdings Co Ltd (TSE:6098). The holdings are predominantly concentrated across 10 industries, covering sectors from Industrials to Real Estate.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.