- By James Li
According to the Aggregated Portfolio of Gurus, a Premium feature of GuruFocus, the Hennessy Japan Fund (Trades, Portfolio), the T. Rowe Price Japan Fund (Trades, Portfolio) and the Matthews Japan Fund (Trades, Portfolio) have several stocks in common. Based on data retrieved on Wednesday, the six stocks held by all three funds are Fast Retailing Co. Ltd. (TSE:9983), Keyence Corp. (TSE:6861), Recruit Holdings Co. Ltd. (TSE:6098), Takeda Pharmaceutical Co. Ltd. (NYSE:TAK)(TSE:4502), Daikin Industries Ltd. (TSE:6367) and SoftBank Group Corp. (TSE:9984).
TAK 15-Year Financial Data
The intrinsic value of TAK
Peter Lynch Chart of TAK
GuruFocus tracks several funds specializing in Japanese stock market
The List of Gurus page displays summary statistics for all gurus covered on GuruFocus. Figure 1 illustrates the "Filter" pop-up that allows users to filter the list of gurus by name, country, equity portfolio value, number of stocks and quarterly turnover.
As Figure 1 illustrates, GuruFocus tracks several funds that trade in the Japanese stock market, including a few gurus that specialize in the country.
Premium users can make a list of gurus and then view the Aggregated Portfolio, which tracks the number of gurus owning each stock and the combined weight. According to GuruFocus' Model Portfolio pages, the Most Broadly Held and Most Weighted portfolios outperformed the Standard & Poor's 500 index benchmark in 2020, suggesting that stocks broadly owned by gurus have good potential.
The following video discusses how to create a list of gurus and then view the combined portfolio of all gurus on the list.
The three funds have a combined weight of 9.31% in Fast Retailing based on the latest portfolio statistics.
Fast Retailing owns the casual-wear retail chain UNIQLO, which is known for its high-quality functional apparel at reasonable prices. GuruFocus ranks the company's profitability 8 out of 10: Despite a weak Piotroski F-score of 3, positive investing signs include a 3.5-star business predictability rank and operating margins that are expanding and operating over 75% of global competitors.
The three funds have a combined weight of 13.82% in Keyence based on the latest portfolio holding statistics.
Keyence develops and sells a wide range of products for the automotive, plastic, steel and pharmaceutical industries. GuruFocus ranks the company's profitability 8 out of 10: Even though three-year earnings growth rates outperform just over 66% of global competitors, operating margins have increased approximately 2.4% per year on average over the past five years and are outperforming over 95% of global hardware companies.
The three funds have a combined weight of 9.25% in Recruit Holdings based on the latest portfolio holding statistics.
Recruit Holdings provides human resource, media and staffing solutions. GuruFocus ranks the company's financial strength and profitability 7 out of 10 on several positive investing signs, which include a strong Altman Z-score of 6.59 and a Beneish M-score that suggests minimal earnings manipulation.
The three funds have a combined weight of 7.13% in Takeda based on the latest portfolio holding statistics.
Takeda manufactures pharmaceutical products for a wide range of therapeutic areas, including oncology, gastroenterology and neuroscience. GuruFocus ranks the company's profitability 6 out of 10: Operating margins are outperforming over 66% of global competitors despite returns and three-year revenue growth rates underperforming more than half of global drug manufacturers.
Other gurus with holdings in Takeda, which include its U.S.-based shares, include the Vanguard Health Care Fund (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio) and her Causeway International Value (Trades, Portfolio) Fund, Larry Robbins (Trades, Portfolio)' Glenview Capital Management and John Paulson (Trades, Portfolio)'s Paulson & Co.
The three funds have a combined weight of 11.59% in Daikin Industries based on the latest portfolio holding statistics.
Daikin Industries provides heating, ventilating and air conditioning (HVAC) services. GuruFocus ranks the company's profitability 7 out of 10 on the back of operating margins and returns outperforming over 70% of global competitors.
The three funds have a combined weight of 14.61% in SoftBank Group based on the latest portfolio holding statistics.
SoftBank offers telecommunications and e-commerce services. GuruFocus ranks the company's profitability 6 out of 10: The company has a high Piotroski F-score of 7 and a net profit margin that outperforms over 77% of global competitors even though returns languish around the industry-median returns.
Disclosure: The author has no positions in the stocks mentioned. The mention of Aggregated Portfolio statistics is based on the latest portfolio filings available and may not reflect any trades or portfolio hedges that occurred during the fourth quarter of 2020. Per Securities and Exchange Commission guidelines, the deadline to report 13-F portfolio holdings is 45 days after the quarter ends.
Read more here:
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Hennessy Japan Fund's Top 4th-Quarter Buys
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This article first appeared on GuruFocus.