March Update: Japan

Folks,

Last week, we took profits on Seikoh Giken, Santec and Union Tool as the run up in the midst of Iranian attacks on oil infrastructure was just too juicy to miss.

In just over 4 months, the Japanese portfolio has performed well:

• We bagged 3x on our first buy of Seikoh Giken and continued to buy it on the way up.

• 2.2x on Union Tool, which we should have also bought on the way up.

• 33% on Santec in two weeks.

We did this after these names had already more than doubled since Liberation Day 2025. Santec was up almost 5x in February.

Of course we are sitting on some unlucky entries as well, notably Japan Electronic Materials, but on balance we are pretty happy with where we are now.

We now have to think about reallocating all that Yen by publishing a reworked list of Japanese ideas. You should think of this list as something for you to fish from in accordance with your own appetite for risk, particularly in light of the conflict with Iran.

We have a new favourite in Japan, and we have some thoughts on where Seikoh Giken and Union Tool go from here.

For new readers and those with capital waiting in the wings, this is the first time we have reworked the Japanese list of ideas this dramatically. March might be an interesting month to join us as we hit the reset button.