In the early 2000s, Japan seemed to be a prime target for
activist investors, but as the decade draws to a close, it is
clear that the aggressive style of activism that was successful
elsewhere was doomed to fail in Japan. Yoshiaki
Morukami’s M&A Consulting, TCI, Tower and
Sparx, to name but a few, have either retreated entirely or
shifted their strategy away from activism. It is against this
backdrop that Taiyo Pacific Partners launched its first
friendly activist Taiyo Fund in 2003, and since then has
launched two more and has gone from strength to strength with
total assets under management of over $1.8 billion.
Brian Heywood, John Hammond and Michael King
The three funds are all value-oriented, based on concentrated
portfolios. The Taiyo Fund holds 12 to 18 positions in Japanese
small-caps; the Pearl Fund, launched in 2007, invests further
down the market...