Hedging fund Verdad plans to launch a new Japanese small-cap stock fund

Jin10 data reported on September 24 that Boston-based hedge fund Verdad Advisers plans to launch a new Japanese stock fund focusing on micro cap stocks, further indicating that global investors are looking to unlock additional returns from Japan's reawakening stock market. Verdad founder Daniel Rasmussen stated that the fund could launch as early as this year and will continue the strategy of the company's existing two micro cap funds, focusing on identifying targets with ineffective capital allocation. Against the backdrop of the Tokyo Stock Exchange pushing for improved profitability and shareholder value of listed companies, hedge funds involved with Japan are regaining favor. Japanese micro cap stocks have performed strongly, with this year's small-cap stock index rising by 19%, surpassing the Tokyo Stock Exchange index's 14% increase. Verdad's two existing funds had a return rate of 39% by the end of August this year, managing a total asset of $300 million, accounting for a quarter of Verdad's total assets.