In this episode, we sit down with Jamie Halse, Founder and Portfolio Manager at Senjin Capital, to dissect one of the most compelling and misunderstood corners of global equities: Japanese small-caps.
Following 13 years at Platinum Asset Management, Jamie launched Senjin Capital in 2024 with a clear mandate – buying quality, asset-rich Japanese small caps at 30 cents on the dollar and engaging constructively with management to unlock trapped balance sheet cash.
We take a deep dive into the real drivers behind Japan’s market evolution, looking past high-level headlines to explore:
The $300M Sweet Spot: Why over 2,000 Japanese micro/small-cap companies lack meaningful analyst coverage, and how that structural neglect creates Senjin’s core edge.
Setting up a Fund: Jamie detailed the operational challenges of setting up an activist fund in Japan, the process of identifying and engaging with target companies, and the cultural and financial literacy aspects of working with Japanese management teams.
Governance Reform vs. Cosmetic Compliance: We discussed the progress of governance reforms in Japan, the differences between large and small caps, and the competitive landscape for activist investing. How to distinguish between genuine capital allocation shifts and superficial disclosures as the Tokyo Stock Exchange pushes for higher capital efficiency.
Tactical Activism: What constructive, active engagement actually looks like in practice.
Macro Dynamics & The Yen: Jamie’s take on central bank policy, unwinding cross-shareholdings, and why currency fluctuations play a distinct role depending on export versus domestic exposure. Jamie shared his views on the yen’s undervaluation, the impact of currency movements on different types of businesses, and briefly compared the situation in Japan to Korea.
Whether you are an institutional allocation specialist or looking to understand why global investors are re-evaluating Japanese equities, this conversation offers a pragmatic, ground-level blueprint for value investing in Japan today.
