A $3.4 Billion Hedge Fund Is Let Down by Japan on Foreign Buying Rules

Shiro Hayashi, who heads the Japanese advisory arm of Dalton, was recently quoted in Bloomberg, discussing new regulation that would force foreign investors to announce when they plan to buy more than 1% of companies involved with Japanese national security. “The news was completely out of the blue for us. Tightening a requirement for the filing is a disappointing development, although we understand this as a national security issue. A 1% threshold is too strict. It has a restraining effect for stealth buying.” As this affects foreign investors, Dalton “will have to monitor cautiously if there is a sign of a reversal trend against the corporate-governance reform,” he says. Read the full article here.