Investment Process
Key Steps
Blending the best of Western techniques with deep local market knowledge, Yuki offers a breadth of bottom-up research and analysis from a proprietary database.
The process commences with the mining of data gathered from public financial statements and reports on over 3000 listed Japanese companies, each of which is ranked according to the Yuki matrix.
From this group of public Japanese companies, Yuki portfolio managers and analysts select around 400 to 500 most attractive investment candidates, gathering proprietary data through regular visits and interviews.
This proprietary market intelligence is then presented to the group. In daily morning meetings, reports and proposals are presented by analysts and portfolio managers - and are vetted by the entire group through dynamic, highly-interactive discussion. In such a setting, the best contributions and expertise of all professionals are tapped. Investment ideas and themes germinate, expanding both individual and firm expertise and capacity. Moreover, the research and analysis systems "learn" and improve as process enhancements and insights are captured, thus creating a system where the sum (the reasoning behind investment decisions) is substantially greater than any individual part (analyst, manager, or executive). The meeting usually lasts one and a half hours, generating investment ideas and serving as an investment strategy meeting to reconfirm to each staff member the discipline and basis of the firm's activities and culture.
Portfolio managers and analysts prepare 3-year EPS growth rate forecasts, rigorously subjecting the available information to intensive, systematic analysis, leading to a revised matrix analysis to determine relative valuation.
Traders and portfolio managers then analyse the market activity level to reach a final investment decision, which leads to efficient portfolio construction.
With this systematic analytical process, Yuki has a proven capacity for identifying companies with superior prospects, identifying intrinsic value gaps (opportunities) vs. other stocks and vs. their own market valuations without relying on third party research from securities firms or research houses.
Key Steps - Overview
Consistent outperformance of TOPIX or relevant benchmark