Look to Japan, Say Two Top Value Managers

Japan continues to deal with economic problems and a stagnant stock market, but top-performing fund manager David Herro says it’s time to buy Japanese equities.

“People hate Japan,” Herro told Bloomberg. But he says the negativity has driven prices down to very attractive levels. “At these prices,” he says, “Japanese stocks are a steal.” Bloomberg reports that 24% of Herro’s equity holdings are now in Japanese firms.

Herro isn’t alone in his optimism on Japan. Another top value investor, Charles de Vaulx, tells Bloomberg that after years of holding onto cash rather than helping shareholders with stock buybacks or dividend payments, Japanese firms are starting to change their ways. He has 40% of his fund’s equity holdings in Japanese firms, according to Bloomberg. “Japan is a market that suffers from an irrational lack of exuberance,” he says.



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