AVI Japan Opportunity Trust

Investor Summary

Asset Value Investors Limited has been established since 1985 and has over three decades of experience in asset-backed companies. The company has 24 employees, with 50% being investors. AVI is authorized and regulated by the Financial Conduct Authority of the United Kingdom and is a registered investment adviser with the SEC. The management company actively engages with portfolio companies, as demonstrated by the successful appointment of AVI's Head of Japan Research, Kaz Sakai, to the board of portfolio company Synchro Food.

Fund Strategy

AVI Japan Opportunity Trust invests in a focused portfolio of over-capitalised small-cap Japanese equities leveraging three decades of experience in asset-backed companies. The investment objective is to achieve long-term capital appreciation through investing in over-capitalised small-cap Japanese equities. Asset Value Investors emphasizes bottom up fundamental research, using both quantitative and qualitative techniques. AVI seeks to construct a discounted portfolio of stocks consisting of companies which due to the geographic and sector diversification of their underlying assets are less likely to display high correlations to the market. The screening process starts by looking at the approximately 3,475 non-financial companies in Japan and narrows down to about 60 with detailed models. The fund typically maintains a concentrated portfolio of 15-25 core holdings. AVI aims to buy companies trading at a discount to NAV and looks for catalysts to narrow the discount. The firm actively engages with management to unlock value through their stewardship approach. AVI has developed a bespoke ESG monitoring system built into its proprietary database to ensure ESG factors are considered alongside financial analysis.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	0.6%	0.6%

Executive Summary

AVI Japan Opportunity Trust returned -8.3% in March 2026, outperforming the MSCI Japan Small Cap benchmark's -10.1% decline. The fund maintains high conviction in Japanese small-caps despite ongoing Middle East geopolitical tensions, citing that 80% of portfolio revenues are domestically derived with companies having resilient earnings and overcapitalised balance sheets. Key contributors included Broadmedia, which rose 21% following AVI's tender offer completion and strong earnings growth, and Wakamoto Pharmaceutical, which forecast its first operating profit since 2023. Kurabo Industries was the main detractor, falling 15% after guidance showed operating income down 18% year-over-year due to textile restructuring costs. AVI controls over 5% voting rights in 15 portfolio names representing 73% of NAV, enabling constructive engagement around capital efficiency improvements. The manager expects favourable conditions to continue in 2026 with modest GDP growth and gradual interest rate normalisation, while anticipating Corporate Governance Code revisions to accelerate capital efficiency improvements across Japanese companies.

Forward Outlook

AVI maintains high conviction in Japanese small to mid-caps in 2026, supported by companies with resilient earnings, overcapitalised balance sheets, and leading positions in niche products. The manager expects favourable conditions to continue supporting their engagement agenda around capital efficiency improvements.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 29 2026	2026 Q1	3106.T, 4347.T, 4512.T	Buybacks, Corporate Governance, Engagement, Japan, small caps, value	4347.T 4512.T 3106.T	AVI Japan Opportunity Trust outperformed in March despite market weakness, driven by successful engagement at Broadmedia and Wakamoto's return to profitability. The fund maintains high conviction in over-capitalised Japanese small-caps, leveraging significant voting stakes to drive capital efficiency improvements. Favourable domestic conditions and pending governance reforms support the value unlocking thesis.
Jan 14 2026	2025 Q4	3963.T, 4347.T, 8929.T	Engagement, Governance, Japan, small cap, value	3963 JP 4347 JP 8929 JP	AVI Japan Opportunity Trust outperformed in December through successful activist engagement at Synchro Food and tender offer announcement for Broadmedia. The fund continues deploying capital from the Fidelity merger while maintaining its constructive engagement strategy. With Japan's corporate governance reforms accelerating and additional firepower available, AVI is positioned to unlock substantial value in under-researched small-cap Japanese equities.
Oct 14 2025	2025 Q3	3106.T, 3529.T, 6727.T	activism, Buybacks, Japan, small caps, value	6727 JP	AVI Japan Opportunity Trust's activist engagement strategy drives results despite September underperformance, with Wacom surging following public campaign and Atsugi announcing medium-term plan after stake increase. Political uncertainty creates volatility but new leadership may favor corporate cash reduction. Fund maintains concentrated exposure across nine companies representing 59% of NAV, positioning for continued value unlock through operational improvements.
Jun 30 2025	2025 Q2	1926.T, 3106.T, 4347.T	activism, Engagement, Japan, small caps, value	4347 JP 3106 JP 1926 JP 4347.T 3106.T 1926.T	AJOT outperformed in June with strong engagement results including a successful shareholder proposal at Eiken Chemical and increased stakes in key holdings like Broadmedia. The domestic-focused portfolio has weathered tariff uncertainty well. Corporate reform momentum continues in Japan with new TSE rules supporting minority shareholders, creating favorable conditions for AVI's constructive engagement strategy.
May 1 2025	2025 Q1	2778.T, 3106.T, 3443.T, 3529.T, 3989.T, 4347.T, 4527.T, 4549.T, 4708.T, 6727.T	activism, capital efficiency, Engagement, Japan, Small-cap, value	3106.T 3529.T 4527.T	AVI Japan Opportunity Trust outperformed in May through focused engagement with over-capitalised small-cap Japanese companies. Kurabo Industries and Atsugi drove returns following successful capital efficiency initiatives and operational improvements. The domestic revenue focus provided tariff resilience while maintaining year-to-date benchmark outperformance of 5.2%. High-conviction pipeline targets continued value unlock opportunities.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 29 2026

2026 Q1

3106.T, 4347.T, 4512.T

Buybacks, Corporate Governance, Engagement, Japan, small caps, value

4347.T
4512.T
3106.T

AVI Japan Opportunity Trust outperformed in March despite market weakness, driven by successful engagement at Broadmedia and Wakamoto's return to profitability. The fund maintains high conviction in over-capitalised Japanese small-caps, leveraging significant voting stakes to drive capital efficiency improvements. Favourable domestic conditions and pending governance reforms support the value unlocking thesis.

Jan 14 2026

2025 Q4

3963.T, 4347.T, 8929.T

Engagement, Governance, Japan, small cap, value

3963 JP
4347 JP
8929 JP

AVI Japan Opportunity Trust outperformed in December through successful activist engagement at Synchro Food and tender offer announcement for Broadmedia. The fund continues deploying capital from the Fidelity merger while maintaining its constructive engagement strategy. With Japan's corporate governance reforms accelerating and additional firepower available, AVI is positioned to unlock substantial value in under-researched small-cap Japanese equities.

Oct 14 2025

2025 Q3

3106.T, 3529.T, 6727.T

activism, Buybacks, Japan, small caps, value

6727 JP

AVI Japan Opportunity Trust's activist engagement strategy drives results despite September underperformance, with Wacom surging following public campaign and Atsugi announcing medium-term plan after stake increase. Political uncertainty creates volatility but new leadership may favor corporate cash reduction. Fund maintains concentrated exposure across nine companies representing 59% of NAV, positioning for continued value unlock through operational improvements.

Jun 30 2025

2025 Q2

1926.T, 3106.T, 4347.T

activism, Engagement, Japan, small caps, value

4347 JP
3106 JP
1926 JP
4347.T
3106.T
1926.T

AJOT outperformed in June with strong engagement results including a successful shareholder proposal at Eiken Chemical and increased stakes in key holdings like Broadmedia. The domestic-focused portfolio has weathered tariff uncertainty well. Corporate reform momentum continues in Japan with new TSE rules supporting minority shareholders, creating favorable conditions for AVI's constructive engagement strategy.

May 1 2025

2025 Q1

2778.T, 3106.T, 3443.T, 3529.T, 3989.T, 4347.T, 4527.T, 4549.T, 4708.T, 6727.T

activism, capital efficiency, Engagement, Japan, Small-cap, value

3106.T
3529.T
4527.T

AVI Japan Opportunity Trust outperformed in May through focused engagement with over-capitalised small-cap Japanese companies. Kurabo Industries and Atsugi drove returns following successful capital efficiency initiatives and operational improvements. The domestic revenue focus provided tariff resilience while maintaining year-to-date benchmark outperformance of 5.2%. High-conviction pipeline targets continued value unlock opportunities.

QUARTER	THEMES	TAGS
2026 Q1	Japan Around 80% of portfolio revenues are derived from Japan, with companies having resilient, growing earnings and overcapitalised balance sheets. Modest expected GDP growth of about 1% in 2026 and inflation close to the BoJ's 2% target suggest only gradual normalisation of interest rates. The Financial Services Agency is conducting its first review of the Corporate Governance Code since 2021 to speed up capital efficiency improvements.	Japan Small Caps Corporate Governance Capital Efficiency BoJ
	Value AVI leverages three decades of experience investing in asset-backed companies to engage with management and unlock value in under-researched small-cap Japanese equities. The fund controls more than 5% of voting rights in 15 portfolio names accounting for 73% of NAV, building meaningful stakes to drive improvements in business operations alongside capital efficiency and governance themes.	Value Asset-backed Engagement Unlisted Holdings Governance
	Buybacks AVI continues to support engagement agenda around improving capital efficiency, including reducing excess net cash and returning excess capital to shareholders. Kurabo announced 481,000 shares repurchased at Y3.7bn cost as part of its buyback program, making it c.50% complete. The revised Corporate Governance Code aims to speed up capital efficiency improvements by companies.	Buybacks Capital Efficiency Excess Cash Shareholder Returns
2025 Q4	AI Manager views AI as a classic capital cycle bubble comparable to past infrastructure manias. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.	Data Centers Capital Cycle Hyperscalers Infrastructure Bubble
	Value Portfolio trades at 12.2x earnings with 8.2% earnings yield versus S&P 500's 26x multiple and 3.9% yield. Active value management through trimming expensive positions and adding to undervalued names has driven outperformance. Sees significant valuation disparity favoring value approach.	Earnings Yield Valuation Active Management Undervalued Outperformance
	Gold Gold mining companies Kinross and Newmont delivered exceptional returns with gold reaching $5,000 per ounce. Mining profitability surged with net margins rising to 30%+ range. Manager constructive on long-term gold price outlook for various unfortunate reasons.	Gold Miners Kinross Newmont Profitability Commodity
	Berkshire Hathaway Warren Buffett stepped down as CEO after 61 years, with Greg Abel taking over. Manager provides detailed tribute to Buffett's legacy and compound interest achievement. Views succession as well-planned with company in excellent hands under new leadership.	Warren Buffett Succession Greg Abel Compound Interest Leadership
	Retail Increased allocation to retailers, particularly dollar stores, from 17.1% to 25.9% of portfolio. Added to Five Below during tariff volatility. These businesses earn good returns on capital despite modest profit margins through efficient asset utilization and working capital management.	Dollar Stores Five Below Tariffs Returns On Capital Working Capital
2025 Q3	Buybacks Multiple portfolio companies completed or announced significant share buyback programs. Kurabo completed a Y6bn buyback program representing 7.3% of total shares. The fund's engagement strategy includes advocating for buybacks as part of capital efficiency improvements.	Share repurchases Capital allocation Shareholder returns
	Japan The fund focuses exclusively on Japanese small-cap equities, with political developments including Prime Minister changes and LDP coalition dissolution creating market volatility. The manager notes potential policy impacts on corporate cash holdings under new leadership.	Japanese equities Political transition Corporate governance
	Value The strategy targets undervalued, overcapitalized, high-quality companies in the small to mid-cap space. The fund seeks to unlock substantial value through constructive engagement initiatives focused on operational improvements and traditional activist themes.	Undervalued Asset-backed Value unlock
2025 Q2	Shareholder Activism AVI successfully passed a shareholder proposal at Eiken Chemical's AGM to allow dividend determination by shareholder resolution. The 2025 AGM season saw a record high 52 companies receive activist proposals. AVI made several large ownership declarations in June, with combined stakes over 5% in 11 portfolio names accounting for 76% of NAV.	Activism Engagement Governance Proposals Ownership
	Corporate Governance The Tokyo Stock Exchange is introducing new rules to enhance minority shareholder protection amid a surge in management buyouts. TSE is making investor relations systems mandatory and had recently mandated timely English disclosure. Kurabo Industries introduced stock-based compensation to enhance alignment of directors and shareholders interests.	Governance Reform Disclosure Alignment Protection
	Value Unlocking AVI's constructive engagement strategy focuses on operational improvements, capital efficiency, and corporate governance. The team has several high-conviction ideas in the pipeline to uncover opportunities in under-researched small to mid-cap companies with scope for improvement through constructive engagement.	Value Engagement Improvement Efficiency Unlocking
2025 Q1	Engagement AVI employs a constructive engagement strategy with unique focus on operational improvements in addition to traditional activist themes of capital efficiency, shareholder communication, and corporate governance. The team holds more than 5% voting rights in 12 portfolio names accounting for 75% of NAV, with building large stakes beneficial for signaling long-term value creation intentions to management teams.	Activism Corporate Governance Operational Improvements Capital Efficiency Shareholder Returns
	Value The portfolio focuses on over-capitalised small-cap Japanese equities with scope for improvement through constructive engagement. Companies like Rohto Pharmaceutical trade at significant discounts to peers despite market leadership positions, with undervaluation explained by lack of focus on core businesses and lower allocation to shareholder returns than peers.	Undervalued Discount Asset-backed Over-capitalised Mispriced
	Japan The portfolio's focus on companies that predominantly derive revenue domestically has limited impact from tariff fallout. The under-researched small to mid-cap Japanese market provides opportunities for uncovering overcapitalised high-quality companies with scope for improvement through constructive engagement.	Domestic Revenue Small-cap Under-researched Japanese Equities Local Market

QUARTER

THEMES

Japan

Around 80% of portfolio revenues are derived from Japan, with companies having resilient, growing earnings and overcapitalised balance sheets. Modest expected GDP growth of about 1% in 2026 and inflation close to the BoJ's 2% target suggest only gradual normalisation of interest rates. The Financial Services Agency is conducting its first review of the Corporate Governance Code since 2021 to speed up capital efficiency improvements.

Japan Small Caps Corporate Governance Capital Efficiency BoJ

Value

AVI leverages three decades of experience investing in asset-backed companies to engage with management and unlock value in under-researched small-cap Japanese equities. The fund controls more than 5% of voting rights in 15 portfolio names accounting for 73% of NAV, building meaningful stakes to drive improvements in business operations alongside capital efficiency and governance themes.

Value Asset-backed Engagement Unlisted Holdings Governance

Buybacks

AVI continues to support engagement agenda around improving capital efficiency, including reducing excess net cash and returning excess capital to shareholders. Kurabo announced 481,000 shares repurchased at Y3.7bn cost as part of its buyback program, making it c.50% complete. The revised Corporate Governance Code aims to speed up capital efficiency improvements by companies.

Buybacks Capital Efficiency Excess Cash Shareholder Returns

2025 Q4

AI

Manager views AI as a classic capital cycle bubble comparable to past infrastructure manias. Sees massive capital spending with improbable returns, creative financing, and circular dynamics among hyperscalers. Expects this to end badly for early investors despite potential societal benefits.

Data Centers Capital Cycle Hyperscalers Infrastructure Bubble

Value

Portfolio trades at 12.2x earnings with 8.2% earnings yield versus S&P 500's 26x multiple and 3.9% yield. Active value management through trimming expensive positions and adding to undervalued names has driven outperformance. Sees significant valuation disparity favoring value approach.

Earnings Yield Valuation Active Management Undervalued Outperformance

Gold

Gold mining companies Kinross and Newmont delivered exceptional returns with gold reaching $5,000 per ounce. Mining profitability surged with net margins rising to 30%+ range. Manager constructive on long-term gold price outlook for various unfortunate reasons.

Gold Miners Kinross Newmont Profitability Commodity

Berkshire Hathaway

Warren Buffett stepped down as CEO after 61 years, with Greg Abel taking over. Manager provides detailed tribute to Buffett's legacy and compound interest achievement. Views succession as well-planned with company in excellent hands under new leadership.

Warren Buffett Succession Greg Abel Compound Interest Leadership

Retail

Increased allocation to retailers, particularly dollar stores, from 17.1% to 25.9% of portfolio. Added to Five Below during tariff volatility. These businesses earn good returns on capital despite modest profit margins through efficient asset utilization and working capital management.

Dollar Stores Five Below Tariffs Returns On Capital Working Capital

2025 Q3

Buybacks

Multiple portfolio companies completed or announced significant share buyback programs. Kurabo completed a Y6bn buyback program representing 7.3% of total shares. The fund's engagement strategy includes advocating for buybacks as part of capital efficiency improvements.

Share repurchases Capital allocation Shareholder returns

Japan

The fund focuses exclusively on Japanese small-cap equities, with political developments including Prime Minister changes and LDP coalition dissolution creating market volatility. The manager notes potential policy impacts on corporate cash holdings under new leadership.

Japanese equities Political transition Corporate governance

Value

The strategy targets undervalued, overcapitalized, high-quality companies in the small to mid-cap space. The fund seeks to unlock substantial value through constructive engagement initiatives focused on operational improvements and traditional activist themes.

Undervalued Asset-backed Value unlock

2025 Q2

Shareholder Activism

AVI successfully passed a shareholder proposal at Eiken Chemical's AGM to allow dividend determination by shareholder resolution. The 2025 AGM season saw a record high 52 companies receive activist proposals. AVI made several large ownership declarations in June, with combined stakes over 5% in 11 portfolio names accounting for 76% of NAV.

Activism Engagement Governance Proposals Ownership

Corporate Governance

The Tokyo Stock Exchange is introducing new rules to enhance minority shareholder protection amid a surge in management buyouts. TSE is making investor relations systems mandatory and had recently mandated timely English disclosure. Kurabo Industries introduced stock-based compensation to enhance alignment of directors and shareholders interests.

Governance Reform Disclosure Alignment Protection

Value Unlocking

AVI's constructive engagement strategy focuses on operational improvements, capital efficiency, and corporate governance. The team has several high-conviction ideas in the pipeline to uncover opportunities in under-researched small to mid-cap companies with scope for improvement through constructive engagement.

Value Engagement Improvement Efficiency Unlocking

2025 Q1

Engagement

AVI employs a constructive engagement strategy with unique focus on operational improvements in addition to traditional activist themes of capital efficiency, shareholder communication, and corporate governance. The team holds more than 5% voting rights in 12 portfolio names accounting for 75% of NAV, with building large stakes beneficial for signaling long-term value creation intentions to management teams.

Activism Corporate Governance Operational Improvements Capital Efficiency Shareholder Returns

Value

The portfolio focuses on over-capitalised small-cap Japanese equities with scope for improvement through constructive engagement. Companies like Rohto Pharmaceutical trade at significant discounts to peers despite market leadership positions, with undervaluation explained by lack of focus on core businesses and lower allocation to shareholder returns than peers.

Undervalued Discount Asset-backed Over-capitalised Mispriced

Japan

The portfolio's focus on companies that predominantly derive revenue domestically has limited impact from tariff fallout. The under-researched small to mid-cap Japanese market provides opportunities for uncovering overcapitalised high-quality companies with scope for improvement through constructive engagement.

Domestic Revenue Small-cap Under-researched Japanese Equities Local Market

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Apr 29, 2026	Fund Letters	AVI Japan Opportunity Trust	4347.T	Broadmedia	Entertainment	Education Services	Bull	New York Stock Exchange	activist, educational technology, IT services, Japan, online education, SaaS Distribution, small-cap, turnaround	Login
Apr 29, 2026	Fund Letters	AVI Japan Opportunity Trust	4512.T	Wakamoto Pharmaceutical	Drug Manufacturers - Specialty & Generic	Pharmaceuticals	Bull	New York Stock Exchange	Gastrointestinal, healthcare, Japan, Ophthalmic, OTC Drugs, pharmaceuticals, Specialty pharma, turnaround	Login
Apr 29, 2026	Fund Letters	AVI Japan Opportunity Trust	3106.T	Kurabo Industries	Conglomerates	Textiles, Apparel & Luxury Goods	Bull	New York Stock Exchange	activist, Chemicals, Diversified Manufacturing, Industrials, Japan, Real Estate, restructuring, Share Buyback, Textiles	Login
Jan 14, 2026	Fund Letters	Joe Bauernfreund	3963 JP	Synchro Food Co., Ltd.	Consumer Discretionary	Internet & Direct Marketing Retail	Bull	New York Stock Exchange	cashflow, Engagement, Governance, Marketplaces, Platforms	Login
Jan 14, 2026	Fund Letters	Joe Bauernfreund	4347 JP	Broadmedia Corporation	Communication Services	Media & Entertainment	Bull	New York Stock Exchange	Capital, Engagement, Governance, Tender	Login
Jan 14, 2026	Fund Letters	Joe Bauernfreund	8929 JP	Aoyama Zaisan Networks Company, Limited	Real Estate	Real Estate Services	Bear	New York Stock Exchange	assets, Delays, guidance, realestate	Login
Oct 14, 2025	Fund Letters	Joe Bauernfreund	6727 JP	Wacom Co., Ltd.	Information Technology	Computer Hardware	Bull	NYSE	Activism, AI, Digitalization, Governance, innovation, Margins, restructuring, Tablets	Login
Jun 30, 2025	Fund Letters	Joe Bauernfreund	1926 JP	Raito Kogyo Co., Ltd.	Industrials	Construction & Engineering	Bull	NYSE	—	Login
Jun 30, 2025	Fund Letters	AVI Japan Opportunity Trust	3106.T	Kurabo Industries	Materials	Textiles, Apparel & Luxury Goods	Bull	Tokyo Stock Exchange	Activist engagement, Advanced technology, Chemicals, Diversified Manufacturing, Japan, Operational Turnaround, Share Buybacks, stock-based compensation, Textiles	Login
Jun 30, 2025	Fund Letters	AVI Japan Opportunity Trust	1926.T	Raito Kogyo	Industrials	Construction & Engineering	Bull	Tokyo Stock Exchange	Activist engagement, capital efficiency, Corporate Governance, Ground Improvement, Japan, market leader, Slope Construction, Specialist Construction, value unlock	Login
Jun 30, 2025	Fund Letters	Joe Bauernfreund	4347 JP	Broadmedia Corporation	Communication Services	Alternative Carriers	Bull	NYSE	Education, Elearning, Engagement, Governance, Margins, restructuring	Login
Jun 30, 2025	Fund Letters	Joe Bauernfreund	3106 JP	Kurabo Industries Ltd.	Industrials	Textiles	Bull	NYSE	buybacks, diversification, Governance, Margins, materials, restructuring	Login
Jun 30, 2025	Fund Letters	AVI Japan Opportunity Trust	4347.T	Broadmedia	Communication Services	Education Services	Bull	Tokyo Stock Exchange	Activist engagement, E-learning, educational technology, growth, IT services, Japan, online education, Secondary Schools	Login
May 31, 2025	Fund Letters	AVI Japan Opportunity Trust	3529.T	Atsugi	Consumer Discretionary	Textiles, Apparel & Luxury Goods	Bull	Tokyo Stock Exchange	Apparel Manufacturer, Consumer Discretionary, Cross-shareholdings, Innerwear, Japan, Legwear, Operational Recovery, restructuring, turnaround, Women's Clothing	Login
May 31, 2025	Fund Letters	AVI Japan Opportunity Trust	3106.T	Kurabo Industries	Materials	Textiles, Apparel & Luxury Goods	Bull	Tokyo Stock Exchange	Advanced technology, Asset Rationalization, capital efficiency, Chemicals, Diversified Manufacturer, Engagement Strategy, Japan, operational improvements, shareholder returns, Textiles	Login
May 31, 2025	Fund Letters	AVI Japan Opportunity Trust	4527.T	Rohto Pharmaceutical	Health Care	Personal Products	Bull	Tokyo Stock Exchange	Consumer healthcare, Eye-drops, Japan, market leader, Medium-term Plan, personal care, pharmaceuticals, R&D Reallocation, Skincare, valuation discount	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Apr 29, 2026

Fund Letters

AVI Japan Opportunity Trust

4347.T

Broadmedia

Entertainment

Education Services

Bull

New York Stock Exchange

activist, educational technology, IT services, Japan, online education, SaaS Distribution, small-cap, turnaround

Apr 29, 2026

Fund Letters

AVI Japan Opportunity Trust

4512.T

Wakamoto Pharmaceutical

Drug Manufacturers - Specialty & Generic

Pharmaceuticals

Bull

New York Stock Exchange

Gastrointestinal, healthcare, Japan, Ophthalmic, OTC Drugs, pharmaceuticals, Specialty pharma, turnaround

Apr 29, 2026

Fund Letters

AVI Japan Opportunity Trust

3106.T

Kurabo Industries

Conglomerates

Textiles, Apparel & Luxury Goods

Bull

New York Stock Exchange

activist, Chemicals, Diversified Manufacturing, Industrials, Japan, Real Estate, restructuring, Share Buyback, Textiles

Jan 14, 2026

Fund Letters

Joe Bauernfreund

3963 JP

Synchro Food Co., Ltd.

Consumer Discretionary

Internet & Direct Marketing Retail

Bull

New York Stock Exchange

cashflow, Engagement, Governance, Marketplaces, Platforms

Jan 14, 2026

Fund Letters

Joe Bauernfreund

4347 JP

Broadmedia Corporation

Communication Services

Media & Entertainment

Bull

New York Stock Exchange

Capital, Engagement, Governance, Tender

Jan 14, 2026

Fund Letters

Joe Bauernfreund

8929 JP

Aoyama Zaisan Networks Company, Limited

Real Estate

Real Estate Services

Bear

New York Stock Exchange

assets, Delays, guidance, realestate

Oct 14, 2025

Fund Letters

Joe Bauernfreund

6727 JP

Wacom Co., Ltd.

Information Technology

Computer Hardware

Bull

NYSE

Activism, AI, Digitalization, Governance, innovation, Margins, restructuring, Tablets

Jun 30, 2025

Fund Letters

Joe Bauernfreund

1926 JP

Raito Kogyo Co., Ltd.

Industrials

Construction & Engineering

Bull

NYSE

—

Jun 30, 2025

Fund Letters

AVI Japan Opportunity Trust

3106.T

Kurabo Industries

Materials

Textiles, Apparel & Luxury Goods

Bull

Tokyo Stock Exchange

Activist engagement, Advanced technology, Chemicals, Diversified Manufacturing, Japan, Operational Turnaround, Share Buybacks, stock-based compensation, Textiles

Jun 30, 2025

Fund Letters

AVI Japan Opportunity Trust

1926.T

Raito Kogyo

Industrials

Construction & Engineering

Bull

Tokyo Stock Exchange

Activist engagement, capital efficiency, Corporate Governance, Ground Improvement, Japan, market leader, Slope Construction, Specialist Construction, value unlock

Jun 30, 2025

Fund Letters

Joe Bauernfreund

4347 JP

Broadmedia Corporation

Communication Services

Alternative Carriers

Bull

NYSE

Education, Elearning, Engagement, Governance, Margins, restructuring

Jun 30, 2025

Fund Letters

Joe Bauernfreund

3106 JP

Kurabo Industries Ltd.

Industrials

Textiles

Bull

NYSE

buybacks, diversification, Governance, Margins, materials, restructuring

Jun 30, 2025

Fund Letters

AVI Japan Opportunity Trust

4347.T

Broadmedia

Communication Services

Education Services

Bull

Tokyo Stock Exchange

Activist engagement, E-learning, educational technology, growth, IT services, Japan, online education, Secondary Schools

May 31, 2025

Fund Letters

AVI Japan Opportunity Trust

3529.T

Atsugi

Consumer Discretionary

Textiles, Apparel & Luxury Goods

Bull

Tokyo Stock Exchange

Apparel Manufacturer, Consumer Discretionary, Cross-shareholdings, Innerwear, Japan, Legwear, Operational Recovery, restructuring, turnaround, Women's Clothing

May 31, 2025

Fund Letters

AVI Japan Opportunity Trust

3106.T

Kurabo Industries

Materials

Textiles, Apparel & Luxury Goods

Bull

Tokyo Stock Exchange

Advanced technology, Asset Rationalization, capital efficiency, Chemicals, Diversified Manufacturer, Engagement Strategy, Japan, operational improvements, shareholder returns, Textiles

May 31, 2025

Fund Letters

AVI Japan Opportunity Trust

4527.T

Rohto Pharmaceutical

Health Care

Personal Products

Bull

Tokyo Stock Exchange

Consumer healthcare, Eye-drops, Japan, market leader, Medium-term Plan, personal care, pharmaceuticals, R&D Reallocation, Skincare, valuation discount

TICKER	COMMENTARY
4347.T	Broadmedia was the largest contributor over the month, adding +19bps to performance as the shares returned +3%. Since the completion of AJOT's tender offer for c.10% of the shares, which took AVI's combined ownership in Broadmedia to 40% of the voting rights, the share price has risen by +21% to March-end. In early February, Broadmedia released its cumulative earnings to Q3 of the financial year ending March 2026, with operating income rising by +40% YoY as revenue fell modestly by -1%. The company also announced further streamlining of its business portfolio through the sale of its non-core fishing-related media operation, a key engagement focus for the AVI team. Positively, management guidance for the full-year forecast implies strong Q4 performance that would take full-year operating income and revenue growth to +56% and +6%, respectively. Following the earnings announcement, the shares have returned +11% to March-end vs the benchmark's +1% return. Added to the portfolio in April 2024, Broadmedia is now a top 5 holding in AJOT, accounting for 6.9% of NAV at month-end. The investment has generated a +26% ROI for an IRR of +30% to month-end (in JPY).
4512.T	Wakamoto Pharmaceutical was the second largest contributor, adding +7bps as its share price returned +6%. Having generated an operating loss in the previous two financial years, in early February, Wakamoto released its cumulative Q3 earnings for the financial year ending March 2026, with operating income turning positive and a forecast 2% operating margin for the full year. In the day following the earnings announcement, the share price rose by +10%. In late-February 2026, as part of the medium-term plan through March 2028, it was announced that President Arata Igarashi would step down from the role and move to the role of Chairman effective April 2026. Since this announcement, the shares have returned +9% to March-end, while the benchmark has returned -8%. Added to the portfolio in February 2025, at month-end Wakamoto accounted for 1.3% of AJOT's NAV. To date, the investment has generated an ROI and IRR of +17% (in JPY).
3106.T	Kurabo Industries was the largest detractor over the month, reducing performance by -122bps as its shares returned -15%. Kurabo was another AJOT portfolio name to report Q3 earnings in February 2026. Cumulative operating income for the financial year ending March 2026 was down by -10% YoY as revenue declined by -6%, while full-year operating income was revised upward modestly, but is still expected to be down -18% YoY due to one-off textile restructuring costs. Since the earnings announcement on 9th February 2026, the shares have returned -19%. In early March 2026, Kurabo announced that 481,000 shares had been repurchased at a cost of Y3.7bn as part of its buyback program from November 2025 to September 2026 for a maximum of c.6% of shares outstanding or Y7.0bn total repurchase cost, making the program c.50% complete. Added to the portfolio in January 2024, the company accounted for 7.5% of AJOT's NAV at month-end as a top 5 holding. The investment has so far generated an ROI of +54% for an IRR of +56% (in JPY).

TICKER

COMMENTARY

4347.T

Broadmedia was the largest contributor over the month, adding +19bps to performance as the shares returned +3%. Since the completion of AJOT's tender offer for c.10% of the shares, which took AVI's combined ownership in Broadmedia to 40% of the voting rights, the share price has risen by +21% to March-end. In early February, Broadmedia released its cumulative earnings to Q3 of the financial year ending March 2026, with operating income rising by +40% YoY as revenue fell modestly by -1%. The company also announced further streamlining of its business portfolio through the sale of its non-core fishing-related media operation, a key engagement focus for the AVI team. Positively, management guidance for the full-year forecast implies strong Q4 performance that would take full-year operating income and revenue growth to +56% and +6%, respectively. Following the earnings announcement, the shares have returned +11% to March-end vs the benchmark's +1% return. Added to the portfolio in April 2024, Broadmedia is now a top 5 holding in AJOT, accounting for 6.9% of NAV at month-end. The investment has generated a +26% ROI for an IRR of +30% to month-end (in JPY).

4512.T

Wakamoto Pharmaceutical was the second largest contributor, adding +7bps as its share price returned +6%. Having generated an operating loss in the previous two financial years, in early February, Wakamoto released its cumulative Q3 earnings for the financial year ending March 2026, with operating income turning positive and a forecast 2% operating margin for the full year. In the day following the earnings announcement, the share price rose by +10%. In late-February 2026, as part of the medium-term plan through March 2028, it was announced that President Arata Igarashi would step down from the role and move to the role of Chairman effective April 2026. Since this announcement, the shares have returned +9% to March-end, while the benchmark has returned -8%. Added to the portfolio in February 2025, at month-end Wakamoto accounted for 1.3% of AJOT's NAV. To date, the investment has generated an ROI and IRR of +17% (in JPY).

3106.T

Kurabo Industries was the largest detractor over the month, reducing performance by -122bps as its shares returned -15%. Kurabo was another AJOT portfolio name to report Q3 earnings in February 2026. Cumulative operating income for the financial year ending March 2026 was down by -10% YoY as revenue declined by -6%, while full-year operating income was revised upward modestly, but is still expected to be down -18% YoY due to one-off textile restructuring costs. Since the earnings announcement on 9th February 2026, the shares have returned -19%. In early March 2026, Kurabo announced that 481,000 shares had been repurchased at a cost of Y3.7bn as part of its buyback program from November 2025 to September 2026 for a maximum of c.6% of shares outstanding or Y7.0bn total repurchase cost, making the program c.50% complete. Added to the portfolio in January 2024, the company accounted for 7.5% of AJOT's NAV at month-end as a top 5 holding. The investment has so far generated an ROI of +54% for an IRR of +56% (in JPY).

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Investment Summary

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Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

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Japan

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Berkshire Hathaway

Retail

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Japan

Value

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Japan

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AVI Japan Opportunity Trust