Hennessy Funds
Hennessy Japan Fund
Apr 2026 → Aug 2026
Our archive holds 4 letters from this strategy, behind 12 investment theses and positions in 14 companies. Every quote below is copied verbatim from the letter it came from.
4 letters in a year — follow all of Hennessy Funds for every strategy.
What it bought and sold
- ExitedRyohin Keikaku Co., Ltd.Aug 2026
• Ryohin Keikaku (Late 2000s: entry at a P/E of approximately 10x; Exited)
Earlier this spring, we increased our stake in Shin- Etsu Chemical, the world's leading manufacturer of silicon wafers, and established a new position in SUMCO.
- AddedShin-Etsu Chemical Co., Ltd.Aug 2026
Earlier this spring, we increased our stake in Shin- Etsu Chemical, the world's leading manufacturer of silicon wafers, and established a new position in SUMCO.
- TrimmedSumitomo Forestry Co., Ltd.May 2026
As for the laggards, Daiwa House Industry Co., Ltd., a top Japanese developer of homes and commercial properties, Sumitomo Forestry Co., Ltd., a globally integrated Japanese homebuilder and timber company, specializing in wooden construction and Tokio Marine Holdings, Inc., Japan’s largest general insurance company with arguably the best underwriting track record and successful overseas expansion detracted the Fund’s performance.
- TrimmedTokio Marine Holdings, Inc.May 2026
As for the laggards, Daiwa House Industry Co., Ltd., a top Japanese developer of homes and commercial properties, Sumitomo Forestry Co., Ltd., a globally integrated Japanese homebuilder and timber company, specializing in wooden construction and Tokio Marine Holdings, Inc., Japan’s largest general insurance company with arguably the best underwriting track record and successful overseas expansion detracted the Fund’s performance.
- TrimmedDaiwa House Industry Co., Ltd.May 2026
As for the laggards, Daiwa House Industry Co., Ltd., a top Japanese developer of homes and commercial properties, Sumitomo Forestry Co., Ltd., a globally integrated Japanese homebuilder and timber company, specializing in wooden construction and Tokio Marine Holdings, Inc., Japan’s largest general insurance company with arguably the best underwriting track record and successful overseas expansion detracted the Fund’s performance.
While we have not commented in detail on the company or developments in AI frontier models since our October 2025 commentary, the rapid shifts in the competitive landscape have prompted us to reduce our position.
Also held
- Sony Group Corp.
- ORIX Corp.
- Tokio Marine Holdings, Inc.
- Mitsubishi UFJ Financial Group, Inc.
- Recruit Holdings Co., Ltd.
- Hitachi, Ltd.
- Keyence Corp.
- SoftBank Group Corp.
- Tokyo Electron Ltd.
- Sekisui House, Ltd.
- Sumitomo Forestry Co., Ltd.
- Shin-Etsu Chemical Co., Ltd.
- Daiwa House Industry Co., Ltd.
- ORIX Corporation
- Mitsubishi Corp.
- Tokyo Electron Limited
- Seven & i Holdings Co., Ltd.
- Sompo Holdings, Inc.
Its investment theses
- Shin-Etsu Chemical Co., Ltd.Aug 2026Shin-Etsu Chemical Co., Ltd. is the world’s leading silicon wafer maker, backed by high barriers to entry and AI-driven wafer demand recovery.
- SUMCO Corp.Aug 2026SUMCO Corp. is a major 300mm silicon wafer producer benefiting from AI infrastructure-driven wafer demand and high barriers to entry.
- Sekisui House, Ltd.Jul 2026Sekisui House, Ltd. is a Japanese homebuilder expanding in the U.S. with prefabrication expertise, high-quality housing know-how, financial strength, and structural housing-demand upside.
- Sumitomo Forestry Co., Ltd.Jul 2026Sumitomo Forestry Co., Ltd. is a Japanese homebuilder expanding in the U.S. market, supported by proprietary construction expertise, high-quality housing differentiation, and structural housing shortages.
- Daiwa House Industry Co., Ltd.Jul 2026Daiwa House Industry Co., Ltd. is a Japanese homebuilder with growing U.S. exposure, differentiated manufacturing capabilities, financial strength, and long-term upside from U.S. housing shortages.
- SoftBank Group Corp.May 2026SoftBank Group is viewed as a significant shareholder in OpenAI, with monetization of AI and advertising potentially driving a revaluation of its assets.
- Tokio Marine Holdings, Inc.May 2026Tokio Marine Holdings benefits from a strategic Berkshire partnership, lower catastrophic risk, and the potential for attractive float-driven capital efficiency.
- Tokio Marine HoldingsApr 2026Tokio Marine Holdings is a major non-life insurer whose Berkshire partnership is seen as enabling larger M&A, stronger competitive positioning, and potentially higher shareholder returns.
- Shin-Etsu ChemicalApr 2026Shin-Etsu Chemical is a global leader in wafers and PVC whose AI-driven demand, cost advantages, and high barriers to entry support long-term earnings growth.
- ORIX CorporationApr 2026ORIX Corporation is repositioning toward asset-light, fee-based earnings and higher ROE, which could drive a valuation re-rating and long-term share price upside.