On April 10, 2017, Bloomberg published an article quoting Jamie Rosenwald, Portfolio Manager for Dalton Investments’ Asian Equities strategies, and Shiro Hayashi, Senior Research Analyst and Head of Dalton’s Tokyo research office, regarding Japan’s recent tax reform allowing companies to spin off businesses tax free. “Here you have probably one of the world’s largest fields of conglomerates that all trade at massive discounts,” said Rosenwald. The government has now given management the tools to make a lot of money for themselves — as future restricted shareholders — along with the existing stock owners. Regarding the ministry’s plan, Rosenwald said , “It’s just, like, phenomenal, Abenomics seems like it’s changing from the top down.”
Dalton has long been committed to corporate engagement in Japan, starting with the management buyout of Sun Telephone in 2006, and continuing through Dalton’s acceptance of the Japan Stewardship Code in 2016, a Dalton team member joining the board of directors of Prestige International also in 2016, and Dalton’s letter to Shinsei Bank.
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Dalton Investments LLC is a value-focused investment management firm with expertise in Asia equities, global equities and fixed income. Headquartered in Los Angeles, with a subsidiary office in Tokyo, Dalton manages $3.1 billion (December 31, 2016) in actively managed long-only and long/short strategies for pensions, endowments, foundations, financial institutions and family offices.