The FUJIMAKI JAPAN Macro fund is a Japan focused macro strategy
fund. FUJIMAKI JAPAN Co., Ltd. is the investment advisor to
Interview with Takeshi Fujimaki and
- 1. What is your current outlook on the Japanese economy
and how has this affected your investment philosophy?
We maintained our constructive view on the Japanese
economy that we had since the inception of the fund. We
are positive on the Japanese equity markets and negative
on the Japanese fixed income markets. However, with the
recent appreciation of the YEN against the USD, we have
somewhat scaled down our bullishness on the equity markets.
On the other hand, we have raised our risk profile on
the fixed income positions.
- 2. How are the duties of running the fund and marketing
divided between yourself and Takeshi Fujimaki? Any other
We are currently an investment advisor to PLAZA ASSET
MANAGEMENT Co., Ltd. (PlazaAM) who manages our fund. PlazaAM
provides us with the following services.
- Trade execution
- Risk Management
- Legal & Compliance
- Back Office
We concentrate on analysing the economy and markets and
generate trade ideas for the fund. Most of our day-to-day
work is done together.
- Risk Management - Yo Nakagawa
- Administration - Yo Nakagawa
- Market Research - Takeshi Fujimaki & Yo Nakagawa
- Investor Communication - Takeshi Fujimaki & Yo
What risk control measures do you operate and what
type of risk appetite do your investors share?
We use VaR to monitor and manage the funds' risks. We
have strict risk limits for the funds that we provide
advice to. The followings are the risk limits:
- Risk Limit: VaR/NAV 5-10% depending on fund
- VaR parameters:
- Confidence level: 99%
- Observation period: One business day
- Data period: Recent one year
- Model : RiskMetrics RiskManager model
We trade mainly in liquid products such as Exchange traded
products and plain vanilla OTC products. We take market
risks and avoid other risks such as credit and liquidity
We trade the local markets where we have the best access.
We use options to leverage and quantify risk. We have
guidelines on how much premium we spend on premium.
Risks and positions are monitored daily between ourselves
Real-time position and PL management is being performed.
We have seen a wide variety of clients interested in
our fund. It is probably not easy to generalise our investors'
risk appetite. However, we think in general they recognise
that our fund is relatively volatile compared to other
- Can you describe your investment strategy in more
detail and what you feel makes your fund unique over other
Japanese Macro funds. Essentially, what is your edge?
The fund is a Japan-focused macro strategy fund and
takes directional trading risks in Japanese fixed income,
equity and foreign exchange markets. Risk is allocated
dynamically across asset classes and does not have a benchmark
The fund trades primarily in liquid exchange traded products
as well as plain vanilla type OTC products to maintain
a high liquidity profile. It will concentrate its exposures
to market risk and will avoid liquidity and credit risk.
Option products are the means to leverage and quantify
The edge of the fund is that it has grass root information
gathering through contacts across industries in Japan
and that adds significant value to its medium- to long-term
macro economic analysis.
We are based in Tokyo and both of us have extensive experience
of trading the Japanese financial products.
- You have recently launched the offshore version of
this fund. How has the capital raising been going? What
is your capacity?
We successfully launched our offshore fund in November.
It has both a USD and JPY class for investors to participate.
As of end of November, we have raised $1 million. We have
another JPY300 million in December. We hope to raise $300
million for this fund.
Why do you exclude UK and US investors from allocating
to your fund?
We are currently working on to make sure that we are
able to accept US and UK investors. The US investors are
the largest investors in the hedge fund business. We are
seeking investors all round the world.
- What made you choose Plaza as the fund's management
company as opposed to acquiring a licence for yourself?
We would like to make the best use of our limited resources.
PlazaAM has a long history in the asset management business
but has a new management team that is focused in developing
the Japanese alternative investment asset market.
Left: Takeshi Fujimaki / Right: Yo Nakagawa
FUJIMAKI JAPAN Co., Ltd.
+81 3 5786 7671
PLAZA ASSET MANAGEMENT Co., Ltd.
+81 5770 2300