Japan small caps lead a mixed August


Although the Japanese market lagged behind other developed markets in August some sectors performed relatively well – in particular those with domestic exposure, thanks in part to the landslide victory for the DPJ.

Small caps outperformed on a relative basis.

It was a mixed month for the long/short funds. Bonsai Microcap did well, a 3.21% August taking three-month figures to 14.89%, while Sector Zen’s 5.57% monthly gain left three-month numbers at 12.9%.

Pelargos Japan Alpha Fund saw a 2.24% August rise which put three month returns at 1.40%. During the month the managers initiated a long position in Tokyo