This article first appeared on GuruFocus.
A Deep Dive Into the Fund’s Latest N-PORT Filing and Strategic Adjustments
Hennessy Japan Fund (Trades, Portfolio) recently submitted its N-PORT filing for the third quarter of 2026, offering value investors a transparent look into its latest portfolio adjustments. The Hennessy Japan Fund (Trades, Portfolio), established on Oct. 31, 2003, seeks long-term capital appreciation by investing at least 80% of its net assets in equity securities of Japanese companies. The fund employs a consistent and repeatable investment process, combining time-tested, purely quantitative stock selection formulas with a highly disciplined, team-managed approach. This strategy aims to identify good businesses with exceptional management trading at attractive prices.
The fund’s investment philosophy centers on arbitrage opportunities between a company’s fundamental value and its market price. Individual stock selection is based on rigorous, on-site research and focuses on factors such as market growth potential, management quality, earnings quality and balance sheet strength. The portfolio selects just the managers’ best ideas and maintains a concentrated number of holdings, making each position change particularly noteworthy for investors tracking the fund’s convictions.
Key Position Increases
Hennessy Japan Fund (Trades, Portfolio) also increased stakes in a total of 2 stocks during the quarter, among them:
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The most notable increase was Seven & i Holdings Co Ltd(TSE:3382), with an additional 238,500 shares, bringing the total to 2,107,400 shares. This adjustment represents a significant 12.76% increase in share count, a 0.65% impact on the current portfolio, and a total value of ?27,944,380.
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The second largest increase was SUMCO Corp(TSE:3436), with an additional 47,500 shares, bringing the total to 300,500. This adjustment represents a significant 18.77% increase in share count, with a total value of ?6,109,170.
Summary of Sold Out Positions
Hennessy Japan Fund (Trades, Portfolio) completely exited 1 of its holdings in the third quarter of 2026, as detailed below:
Portfolio Overview
At the third quarter of 2026, Hennessy Japan Fund (Trades, Portfolio)’s portfolio included 28 stocks. The top holdings included 8.59% in ORIX Corp(TSE:8591), 8.25% in Mitsubishi UFJ Financial Group Inc(TSE:8306), 8.22% in Tokyo Electron Ltd(TSE:8035), 7.86% in Hitachi Ltd(TSE:6501), and 6.48% in Recruit Holdings Co Ltd(TSE:6098).
