I just wanted to tell you that Aurelion does great, quality research. I worked as an equity research partner at the world's second biggest hedge fund years ago. Pretty confident I know great research.
Great! I also recommend to check mitsumi minebea (ball bearings for drones, robots, phones etc market leader), and Niterra (spark plugs for automobiles etc - global leader) which funds their next Gen tech (ceramics, battery tech). Awesome companies.
I'm Japanese - it was interesting to see how foreigners view and evaluate Japan. The bank / securities basket had been a consensus play since a few years back though, ever since BOJ started raising rates. Same for robotics / semi as they're more of a beta play to overall ai semi baskets globally in my view. Nice analyses neverthless!
Based on August earnings season, it's become clear that Japanese companies are using MORE (not less) consulting services, which might be different from the West given the cultural differences. I find this quite interesting.
It's hard to fire people in Japan as labor is protected by law (Article 16, Labor Contract Act) - hence AI adoption by enterprises requires organizational/strategic consulting (how to reshuffle those being replaced internally to work on something else).
Within Enterprise AI adoption, I find that there could be 6-12 months lag compared to the West. I think that's enough to find interesting theses i.e. recent interviews of company CEOs have mentioned that cybersecurity demand will rise with AI deployment, all the while cyrbersecurity companies had been doing so well in the U.S. for so long this year. There are more theses around these.
I'm trying to find theses around the rising interest rates, something not obvious but may have ripple effects over time - I don't find people working on this at least for now, which gives me a good alpha vibe if i can find a good thesis.
Hi,
I just wanted to tell you that Aurelion does great, quality research. I worked as an equity research partner at the world's second biggest hedge fund years ago. Pretty confident I know great research.
Best,
Tom tom@northsound.com
Thank you, Tom. It really means a lot to us, coming from you!
Great! I also recommend to check mitsumi minebea (ball bearings for drones, robots, phones etc market leader), and Niterra (spark plugs for automobiles etc - global leader) which funds their next Gen tech (ceramics, battery tech). Awesome companies.
Thank you Giew!
We will have a look at them.
Thanks very much for the time and effort put into this.
If there were no issues around minimums, would Nabtesco be a high conviction pick for you?
Yes it would be! Really good business
I also have a meaningful Japanese basket. I'm a USD investor and the FX rate has been my nemesis. Do you hedge exchange rates, and if so, how?
We do not.
I'm Japanese - it was interesting to see how foreigners view and evaluate Japan. The bank / securities basket had been a consensus play since a few years back though, ever since BOJ started raising rates. Same for robotics / semi as they're more of a beta play to overall ai semi baskets globally in my view. Nice analyses neverthless!
Thanks Yosh! Anything you feel is over looked in Japan right now? Could be a sector or a company, really curious.
Based on August earnings season, it's become clear that Japanese companies are using MORE (not less) consulting services, which might be different from the West given the cultural differences. I find this quite interesting.
It's hard to fire people in Japan as labor is protected by law (Article 16, Labor Contract Act) - hence AI adoption by enterprises requires organizational/strategic consulting (how to reshuffle those being replaced internally to work on something else).
Within Enterprise AI adoption, I find that there could be 6-12 months lag compared to the West. I think that's enough to find interesting theses i.e. recent interviews of company CEOs have mentioned that cybersecurity demand will rise with AI deployment, all the while cyrbersecurity companies had been doing so well in the U.S. for so long this year. There are more theses around these.
I'm trying to find theses around the rising interest rates, something not obvious but may have ripple effects over time - I don't find people working on this at least for now, which gives me a good alpha vibe if i can find a good thesis.