Key Takeaways
- • Hedge fund managers at the inaugural Sohn Conference in Tokyo on October 16, 2026 pitched corporate reform as the next phase of Japan's equity story, with more than half of the 14 funds invited to pitch favoring the theme.
- • Polymer Capital's Daisuke Nakayama picked Orix Corporation, citing a management change as "a big turning point" in its transformation into a global investment firm, with a focus on capital allocation and ROE.
- • Indus Capital Partners invested in Rigaku (268A.T), an X-ray equipment supplier pivoting to semiconductor metrology, and forecasts a 100% rise in its valuation by 2029.
- • Per brokerage Jefferies, the number of activist campaigns in Japan hit a record last year, after years of pressure from regulators and the Tokyo Stock Exchange.
- • Managers argued that back-office software operators such as Money Forward and OBIC Business Consultants are AI beneficiaries rather than losers, helping Japan address labor tightness.
Summary
The next phase of Japanese corporate reform was a central theme at the inaugural Sohn Conference in Tokyo on October 16, 2026, according to Reuters. Fourteen funds were invited to pitch their top investment ideas, and more than half of the investors favored corporate reform. Fund managers said the focus is shifting beyond dividends and buybacks toward companies deploying capital to expand businesses and drive long-term growth.
Daisuke Nakayama, a portfolio manager at Hong Kong-headquartered Polymer Capital, selected Orix Corporation, describing a change in management as "a big turning point" in the company's transformation into a global investment firm. He said the new leadership has a greater focus on capital allocation and ROE, and that the firm is using overseas capital, including from the Qatar Investment Authority, to bid for companies.
New York-based Indus Capital Partners said it had invested in Rigaku (268A.T), an X-ray equipment supplier pivoting to semiconductor metrology and inspection, and had engaged with the company on a sale of a stake to a US semiconductor firm to drive revenue. Byron Gill, managing partner at Indus, said X-ray technology is needed to detect defects in 3D chips and forecast a 100% rise in Rigaku's valuation by 2029.
Market participants said the corporate reform theme still has a long way to run. Naohide Une, partner and CEO at Investment Lab, said "Japan changes slowly, but once the change starts, it does not reverse," and picked Ube Corporation (4208.T) for its reform efforts. In a separate Q&A, Seth Fischer, founder of activist Oasis Management, said his fund may substantially increase its stake in Nidec (6594.T).
AI was another key theme. Ruane Cunniff and Japan Catalyst picked Money Forward (3994.T) and OBIC Business Consultants (4733.T), respectively, arguing that back-office software operators are AI winners because clients require accuracy. Per Jefferies, activist campaigns in Japan reached a record last year.
Daisuke Nakayama, a portfolio manager at Hong Kong-headquartered Polymer Capital, selected Orix Corporation, describing a change in management as "a big turning point" in the company's transformation into a global investment firm. He said the new leadership has a greater focus on capital allocation and ROE, and that the firm is using overseas capital, including from the Qatar Investment Authority, to bid for companies.
New York-based Indus Capital Partners said it had invested in Rigaku (268A.T), an X-ray equipment supplier pivoting to semiconductor metrology and inspection, and had engaged with the company on a sale of a stake to a US semiconductor firm to drive revenue. Byron Gill, managing partner at Indus, said X-ray technology is needed to detect defects in 3D chips and forecast a 100% rise in Rigaku's valuation by 2029.
Market participants said the corporate reform theme still has a long way to run. Naohide Une, partner and CEO at Investment Lab, said "Japan changes slowly, but once the change starts, it does not reverse," and picked Ube Corporation (4208.T) for its reform efforts. In a separate Q&A, Seth Fischer, founder of activist Oasis Management, said his fund may substantially increase its stake in Nidec (6594.T).
AI was another key theme. Ruane Cunniff and Japan Catalyst picked Money Forward (3994.T) and OBIC Business Consultants (4733.T), respectively, arguing that back-office software operators are AI winners because clients require accuracy. Per Jefferies, activist campaigns in Japan reached a record last year.
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