Unique concept and strategy without the costs associated with setting up covered warrants

Dejima news

Dejima in the news

Bloomberg: Top-Ranked Fund Sees Buying Opportunity in Japan Equity Rout

An equity rout that wiped out 36 trillion yen ($330 billion) from Japan’s benchmark average over the past two weeks is presenting investors with an opportunity to buy before shares potentially rebound to levels unseen since 1990, according to a top-ranked fund.

Dejima Asset Management, whose Japan Synthetic Warrant Fund was last year’s best performer among 140 Japan-focused funds tracked by Eurekahedge Pte, is bullish on Japan because of a healthy global economy, low inflation and attractive corporate
earnings. Japan’s stock market will also benefit from the Bank of Japan’s easy monetary policy, which is unlikely to end anytime soon given that inflation is low, according to the fund.“The selloff in Japanese stocks is a healthy correction,” said Matthew Lonergan, a London-based manager of the Japan Synthetic Warrant Fund. “We do not see this as the start of a long-term correction as the economic and corporate fundamentals are just too strong.”

An equity rout that wiped out 36 trillion yen ($330 billion) from Japan’s benchmark average over the past two weeks is presenting investors with an opportunity to buy before shares potentially rebound to levels unseen since 1990, according to a top-ranked fund.

Dejima Asset Management, whose Japan Synthetic Warrant Fund was last year’s best performer among 140 Japan-focused funds tracked by Eurekahedge Pte, is bullish on Japan because of a healthy global economy, low inflation and attractive corporate
earnings. Japan’s stock market will also benefit from the Bank of Japan’s easy monetary policy, which is unlikely to end anytime soon given that inflation is low, according to the fund.“The selloff in Japanese stocks is a healthy correction,” said Matthew Lonergan, a London-based manager of the Japan Synthetic Warrant Fund. “We do not see this as the start of a long-term correction as the economic and corporate fundamentals are just too strong.”

Read More
Matthew Lonergan
Asia Hedge Magazine: Dejima

Dejima’s Japan Synthetic Warrant Fund (JSW) has been doing what it says on the tin and returning to investors warrant-like returns on the outperforming Japanese equity market. With the Japanese equity market up approximately 61% on a 12 month view since end of November 2012, JSW was up approximately 660% in its Yen Class of shares and 516% in its US Dollar Class of shares.

JSW is a warrant fund, the downside can be considerable such as in 2011 when the earthquake and tsunami engulfed northern Japan, the equity market fell almost 10% in March 2011 and almost 20% for the 2011 year, JSW was down almost 40% in March 2011 and approximately 75% in US Dollars and 77% in Yen for the year of 2011.

JSW was founded in October 2005 as a weekly dealing fund (on the back of its monthly dealing, sister fund, The Dejima Fund).  JSW seeks to create geared exposure to the Japanese equity market via investments in asset swapped convertible bonds (ASCOTS) and listed and OTC warrants in companies that are quoted on the Japanese stock exchanges.

Read More
Matthew Lonergan
Bloomberg: Japan Top Fund Fell 25% After Brexit Vote as Volatility Rose

Investors who put their money in Dejima Capital LLP’s warrant fund have been on a roller coaster ride of late.

The fund, Japan’s best-performing fund for 2015, plunged 25 percent on June 24 when the U.K. voted to leave the European Union, bringing its drop this year to 50 percent. The fund, whose moves amplify the Topix index’s performance, tends to fall about three times more than the benchmark when it declines and gain five to seven times when the index rises, Matthew Lonergan, who runs Japan Synthetic Warrant Fund with Trevor Sliwerski and Rowan Chaplin, said in an interview.

“We’ve got used to huge moves and we try not to get stressed out by them,” said Sliwerski. June was “one of the worst months” in a long time, he said.

Dejima’s fund is among those those that got slammed as volatility spiked globally in the wake of the U.K.’s decision to secede from the EU. Global equities tumbled after the vote, and the pound fell by a record on the day to the lowest in more than three decades. The Topix fell 7.3 percent on June 24, while the Nikkei 225 Stock Average plunged almost 8 percent as the yen strengthened. The Nikkei measure recouped more than half its losses last week as officials from England to Japan indicated they would act to stem the potential fallout.

The $2.9 trillion hedge fund industry is headed for its worst first-half performance since 2011 as the year has been marked by shocks spurred by China’s currency and stock markets in January, followed by the Bank of Japan’s move to negative interest rates in February and most recently, the Brexit vote.

Read More
Matthew Lonergan