Latest news

Pelargos Japan 2020 Voting Report

Pelargos has published its 2020 voting report. See here for details.

Pelargos Capital CIO Michael Kretschmer speaks about opportunities in Japanese equities

Recently our CIO Michael Kretschmer spoke about opportunities in the Japanese equity market in a Champions Call organized by Universal Investment. The presentation is in the German language, but materials are available in English. The presentation can be viewed here.



The Pelargos way

Number1

Fundamental value investing in Japanese equities

We believe that fundamental, bottom-up value analysis enables us to better understand and more effectively manage risk. We target asymmetric pay off structures with strong positive skews. We are convinced this is the best way of generating outstanding returns. Engaging with management teams and proposing enhancements related to corporate governance is an integral part of our investment process.

Number2

Entrepreneurial culture with institutional infrastructure

Pelargos is regulated under the AIFM Directive and reports to various industry oversight bodies. Pelargos is an AIMA member and our key service providers are best of class partners. Our state-of-the-art infrastructure enables effective trading, reporting and performance attribution analysis to provide transparency for our clients.

Number3

Proven trackrecord

Launched in the midst of the 2008 financial crisis, the Pelargos team has delivered excellent results in both up and down markets. Thanks to the capital commitment from our cornerstone investor and partner Aegon, Pelargos approaches the investment business with a long term horizon. This enables us to effectively control the downside and to expose us to attractive upside.


Our equity solution

Unlock value in Japan with active downside control

Our Solution

Japan is an extremely inefficient market ...

Japanese equities are a completely neglected asset class. With 3600 listed companies analyst coverage is very poor. Valuations are extremely attractive and trading volumes are depressed. The improvement in corporate governance is a big game changer and vastly underappreciated by market participants.

... but tremendously volatile ...

The Japanese equity market is considered a high beta proxy on global growth. With low domestic GDP growth and limited inflation, return on capital tends to be low.

... therefore understanding intrinsic value is paramount

Understanding intrinsic value of a company provides a great awareness of downside risk. We enhance our fundamental value approach with disciplined risk management. This enables us to achieve attractive returns with limited downside, and thereby to compound wealth in the the long run.