Key Takeaways
- • Patrick Rial of the Hosomichi Fund, run at TriVista Capital, told the Next Wave session at Sohn Tokyo 2026 that a Japanese small-cap golf company is priced like an industrial conglomerate, implying about 50% upside.
- • Between 84% and 99% of the company's operating profit over the last four years has come from carbon fiber golf shafts, which top tour players use.
- • Rial says the shareholder pressure needed to close the valuation gap is already in place.
- • The Hosomichi strategy is constructivist: it buys small Japanese companies and pushes them to improve.
Summary
Patrick Rial, portfolio manager of the Hosomichi Fund at TriVista Capital, argued at the Next Wave session of Sohn Tokyo 2026 that a Japanese small-cap company is being valued by the market as a collection of rubber parts and industrial equipment, despite its earnings being driven almost entirely by golf. According to the Hedge Fund Alpha report, between 84% and 99% of the company's operating profit over the last four years has come from carbon fiber golf shafts, a product used by the world's best tour players. Rial put the gap between market value and this earnings profile at roughly 50% upside, and said the shareholder pressure required to close it is already in place.
Rial framed the investment case around the cost of golf for consumers, noting that fees and equipment make the sport expensive, and suggested the company's product could move golf from a cost center to a profit center for those involved in it. His presentation drew on a background in financial journalism, including stints at Morgan Stanley and J.P. Morgan, followed by ten years as a senior analyst at boutique fund Varecs Partners. He has lived in Japan since 2003.
The Hosomichi Fund pursues a constructivist strategy, buying small Japanese companies and engaging with management to improve them. The full article is behind a registration wall, so the company name and specific valuation metrics were not available in the source material reviewed.
Rial framed the investment case around the cost of golf for consumers, noting that fees and equipment make the sport expensive, and suggested the company's product could move golf from a cost center to a profit center for those involved in it. His presentation drew on a background in financial journalism, including stints at Morgan Stanley and J.P. Morgan, followed by ten years as a senior analyst at boutique fund Varecs Partners. He has lived in Japan since 2003.
The Hosomichi Fund pursues a constructivist strategy, buying small Japanese companies and engaging with management to improve them. The full article is behind a registration wall, so the company name and specific valuation metrics were not available in the source material reviewed.
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