Deep Value Graham & Dodd Opportunities In Japan (Part One)

Over the past three decades, Japan’s depressed equity market has been the perfect hunting ground for deep value investors. But the recent multi-year rally, driven by Prime Minister Shinzo Abe’s, Abenomics policies, have made it harder to find value in the region.

Abenomics

The ‘third arrow’ of the Abenomics should reverse this trend. Abenomics' third arrow has been branded as key to revitalizing Japan's economy. It focuses on corporate Japan’s mentality and policies, forcing structural reform upon the economy.

Improved corporate governance, shareholders returns, investment overseas and increased R&D spending are all on the reform list for corporate Japan, and things are starting to change, albeit slowly.

Graham and Dodd deep value

To this end, Jefferies recently published a research note on...