Hennessy Funds
Hennessy Japan Fund
Apr 2026 → Oct 2026
Our archive holds 6 letters from this strategy, behind 14 investment theses and positions in 43 companies. Every quote below is copied verbatim from the letter it came from.
6 letters in a year — follow all of Hennessy Funds for every strategy.
Performance
as of Sep 30, 2026 · net of fees · USD · Institutional Class - HJPIX
- 1Y+29.4%index +28.9%
- 5Y · /yr+7.4%index +10.8%
- 10Y · /yr+10.0%index +10.1%
Index: Russell/Nomura Total Market Index
| 1Y | 5Yper year | 10Yper year | |
|---|---|---|---|
| Hennessy Japan Fund | +29.4% | +7.4% | +10.0% |
| Russell/Nomura Total Market Index | +28.9% | +10.8% | +10.1% |
Disclaimer
These figures are copied from the manager’s latest letter, as of Sep 30, 2026. They were extracted automatically, have not been verified by HF Best Ideas and may contain errors. They cover a single share class, in the currency and fee basis stated above; other share classes and your own returns will differ. This is not investment advice, nor an offer to buy or sell any fund. Past performance does not predict future returns.
Read full disclosures →What it bought and sold
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
We have already sold the majority of these investments or have completed a full exit over the years.
• 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.
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.
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.
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.
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
- Seven & i Holdings Co., Ltd.
- Recruit Holdings Co., Ltd.
- Tokyo Electron Limited
- Mitsubishi UFJ Financial Group, Inc.
- Sony Group Corporation
- SoftBank Group Corp.
- Tokio Marine Holdings, Inc.
- Mitsubishi UFJ Financial Group
- Daikin Industries, Ltd.
- Mizuho Financial Group, Inc.
- ORIX Corp
- Sompo Holdings, Inc.
- Hitachi, Ltd.
- MS&AD Insurance Group Holdings
- Tokyo Electron, Ltd.
- Keyence Corp.
- Shin-Etsu Chemical Co., Ltd.
- Sony Group Corp.
- ORIX Corp.
- Tokyo Electron Ltd.
- Sekisui House, Ltd.
- Sumitomo Forestry Co., Ltd.
- Daiwa House Industry Co., Ltd.
- ORIX Corporation
- Mitsubishi Corp.
Its investment theses
- Fast Retailing Co., Ltd.Oct 2026Fast Retailing’s UNIQLO is positioned as a functional apparel brand built on hard-to-replicate product advantages and global expansion.
- Seven & i Holdings Co., Ltd.Sep 2026Seven & i Holdings Co., Ltd. is viewed as exceptionally undervalued because goodwill amortization masks stronger underlying earnings and cash flow, with attractive valuation and capital return potential.
- 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.