Mid/small-cap Japan gains for Sector Zen


Norway-based Sector Zen posted a healthy 2.14% gain in September leaving year-to-date numbers at 3.26%. The fund uses proprietary screening models to identify small and mid-caps in Japan, which manager Trond Hermansen considers a severely under-researched universe, with low levels of coverage by analysts when compared to developed and even to emerging markets.

The fund is positioned to be long of domestic deep value plays, many of which are in sectors currently seeing a post-earthquake rebound such as housing, retail and construction. Hermansen is short of companies with global cyclical exposure, many of which, having traded at a