The next gold mine in the Japanese stock market? American hedge fund Verdad targets small-cap stocks in search of "alpha"

Boston-based hedge fund Verdad Advisers LP plans to launch a new Japanese equity fund that primarily invests in small-cap companies. This move reflects a shift in global investors' attention towards small-cap stocks in the Japanese stock market in search of higher returns. The new fund will continue the strategy of the existing small-cap fund, focusing on companies with inefficient capital usage. Small-cap stocks have performed strongly on the Tokyo Stock Exchange, with related indices outperforming large-cap stocks