Exploring the Latest Investment Adjustments by Hennessy Japan Fund (Trades, Portfolio)

Hennessy Japan Fund (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2024, offering a glimpse into its strategic investment decisions during this period. Established on October 31, 2003, the Hennessy Japan Fund (Trades, Portfolio) aims for long-term capital appreciation by investing at least 80% of its net assets in equity securities of Japanese companies. The fund employs a consistent and repeatable investment process, combining time-tested, purely quantitative stock selection formulas with a highly disciplined, team-managed approach. The fund's strategy focuses on identifying good businesses with exceptional management that are trading at attractive prices. This involves rigorous, on-site research, emphasizing market growth potential, management quality, earnings quality, and balance sheet strength. The fund seeks arbitrage opportunities between a company's fundamental value and its market price, maintaining a concentrated portfolio of the managers' best ideas.

Key Position Increases

Hennessy Japan Fund (Trades, Portfolio) also increased stakes in a total of three stocks, among them:

• The most notable increase was in Renesas Electronics Corp (TSE:6723, Financial), with an additional 107,900 shares, bringing the total to 1,194,000 shares. This adjustment represents a significant 9.93% increase in share count, a 0.37% impact on the current portfolio, with a total value of 円15,997,600.
• The second largest increase was in Sony Group Corp (TSE:6758, Financial), with an additional 49,300 shares, bringing the total to 1,166,800. This adjustment represents a significant 4.41% increase in share count, with a total value of 円20,532,780.

Key Position Reduces

Hennessy Japan Fund (Trades, Portfolio) also reduced positions in 11 stocks. The most significant changes include:

• Reduced Fast Retailing Co Ltd (TSE:9983, Financial) by 10,100 shares, resulting in a -20.57% decrease in shares and a -0.67% impact on the portfolio. The stock traded at an average price of 円46,518.3 during the quarter and has returned 11.17% over the past 3 months and 53.55% year-to-date.
• Reduced MS&AD Insurance Group Holdings Inc (TSE:8725, Financial) by 88,400 shares, resulting in a -10.59% reduction in shares and a -0.5% impact on the portfolio. The stock traded at an average price of 円3,313.88 during the quarter and has returned 2.29% over the past 3 months and 91.99% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, Hennessy Japan Fund (Trades, Portfolio)'s portfolio included 27 stocks. The top holdings included 8.81% in Hitachi Ltd (TSE:6501, Financial), 7.42% in Recruit Holdings Co Ltd (TSE:6098, Financial), 6.96% in Seven & i Holdings Co Ltd (TSE:3382, Financial), 5.54% in Mitsubishi Corp (TSE:8058, Financial), and 5.31% in Sony Group Corp (TSE:6758, Financial).

The holdings are mainly concentrated in 8 of the 11 industries: Financial Services, Industrials, Technology, Consumer Defensive, Communication Services, Basic Materials, Consumer Cyclical, and Healthcare.

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