Dalton, with $2 billion under management, runs value-oriented hedge funds, and its principals have a reputation for investing in profitable contrarian situations—California apartment buildings after the savings-and-loan crisis, Shanghai real estate after SARS, and distressed mortgages. Now they are backing a fund investing in apartments in hard-hit markets such as Las Vegas. "In chemistry terms, Jamie [Rosenwald] is the activation energy," says a fund manager who asked not to be named. "When a reaction should happen, he's the catalyst." Read More> >
Santa Monica, CA (October 30, 2012) – Dalton Investments® today said that it was named Management Firm of the Year at the 2012 AsiaHedge Awards, held in Hong Kong on October 25.
The AsiaHedge Awards recognize the best risk-adjusted returns over a 12-month period and the Management Firm of the Year award is given to the top firm managing two or more funds with combined assets of over $400 million. AsiaHedge, a leading database, news and analysis provider focused on Asia-Pacific hedge funds, is published by HedgeFund Intelligence, the largest provider of hedge fund news and data in the world. Read More> >
Public valuations are especially depressed among overlooked small companies with market caps of less than 100 billion yen (US$1.27 billion). One in every five such companies has an enterprise value less than three times its cash flow. A whopping 183 companies–or roughly 6% of the small-cap sector–recently sported market values below even their cash holdings.
"These companies are obvious MBO targets, but management usually has limited interest in taking action, as they view the cash as their retirement allowance and safety net," says James Rosenwald, managing partner of Dalton Investments. For example, Dalton teamed up with private-equity investors to take Sun Telephone private in 2007 and has since slashed debt leverage from 90% to zero, freeing up cash flow to pay dividends amounting to 30% of their initial investments. Rosenwald expects these payouts to continue "until the markets turn more positive and we can re-list Sun Telephone on the Tokyo Stock Exchange." Read More>>