Insights from the Latest N-PORT Filing for Q2 2024

Matthews Japan Fund (Trades, Portfolio), a stalwart in Japanese equity investments, has recently disclosed its N-PORT filing for the second quarter of 2024. Established on December 31, 1998, the fund is dedicated to achieving long-term capital appreciation. It primarily invests in the stocks of companies located in Japan, leveraging a bottom-up, fundamental investment philosophy. This approach emphasizes long-term performance, focusing on companies with unrecognized potential, sustainable growth prospects, and robust business models. The fund's strategy is informed by extensive on-ground research, including over 2,000 company meetings annually, aiming to tap into the evolving Asian markets' potential.

• Warning! GuruFocus has detected 5 Warning Sign with TSE:6861.

Summary of New Buys

During the second quarter of 2024, Matthews Japan Fund (Trades, Portfolio) expanded its portfolio by adding six new stocks. Noteworthy new additions include:

• Sony Group Corp (TSE:6758), purchasing 240,800 shares, which now comprise 3.12% of the portfolio, valued at 20,521.26 million.
• Honda Motor Co Ltd (TSE:7267), with 1,479,100 shares, making up 2.42% of the portfolio, valued at 15,900.31 million.
• Minebea Mitsumi Inc (TSE:6479), adding 421,000 shares, accounting for 1.32% of the portfolio, valued at 8,672.95 million.

Key Position Increases

The fund also strategically increased its stakes in 17 existing holdings, including:

• ITOCHU Corp (TSE:8001), with an additional 146,600 shares, bringing the total to 564,100 shares. This adjustment increased the share count by 35.11%, impacting the portfolio by 1.09%, with a total value of 27,730.14 million.
• Capcom Co Ltd (TSE:9697), with an additional 234,600 shares, bringing the total to 795,200 shares. This adjustment represents a 41.85% increase in share count, valued at 15,042.71 million.

Summary of Sold Out Positions

The fund completely exited nine positions in this quarter, including significant stocks such as:

• Mitsubishi Corp (TSE:8058), selling all 982,200 shares, which had a -3.13% impact on the portfolio.
• Toyota Motor Corp (TSE:7203), liquidating all 819,600 shares, resulting in a -2.86% portfolio impact.

Key Position Reductions

Additionally, Matthews Japan Fund (Trades, Portfolio) reduced its holdings in 22 stocks. Major reductions include:

• Hikari Tsushin Inc (TSE:9435), with a reduction of 53,000 shares, resulting in a -77.94% decrease and a -1.37% impact on the portfolio. The stock traded at an average price of 26,498.9 during the quarter and has returned 21.38% over the past three months and 34.35% year-to-date.
• Mitsui Fudosan Co Ltd (TSE:8801), with a reduction of 849,500 shares, resulting in a -46.24% decrease and a -1.26% impact on the portfolio. The stock traded at an average price of 1,516.09 during the quarter and has returned 7.57% over the past three months and 35.45% year-to-date.

Portfolio Overview

As of the second quarter of 2024, Matthews Japan Fund (Trades, Portfolio)'s portfolio included 45 stocks. The top holdings were 4.83% in Keyence Corp (TSE:6861), 4.64% in Tokio Marine Holdings Inc (TSE:8766), 4.61% in Hitachi Ltd (TSE:6501), 4.38% in Shin-Etsu Chemical Co Ltd (TSE:4063), and 4.28% in Mitsubishi UFJ Financial Group Inc (TSE:8306). The holdings are predominantly concentrated in nine of the eleven industries, including Technology, Consumer Cyclical, and Industrials.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.