JOHCM's Nash: M&A will drive Japanese equity rally

Natalie Kenway
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M&A activity among small- and mid-cap stocks in the Japanese market could lead to a long-term rally in equities, according to JO Hambro Capital Management's Ruth Nash.

The manager of the £196m JOHCM fund, a top performer in its sector, said the fact smaller Japanese companies are so under-researched by analysts means investors are missing out on huge opportunities as takeover activity intensifies. "The resources devoted to the Japanese market have declined. The asset class has been out of favour for so long brokers tend to now only concentrate on larger names. We have seen active M&A which people are not even aware is going on. Companies are paying cash at a significant premium for small and mid caps. "Japan is the least efficient of the major devel...

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