A top-performing Japanese stock fund bought shares of Mitsubishi Estate over the past months on the view that inflation will lift revenue as the domestic real estate sector remains attractive.
Orbis Investment Management reassessed the value of all the properties that Japan’s biggest developer owns, and "the stock price turned out to be much cheaper than that,” said Tsukasa Tokikuni, head of the fund’s unit in Tokyo.
"In most cases, the valuation of the property hasn’t been reassessed for more than 20 years,” due to a lack of accounting regulations to keep that estimate up to date, according to Tokikuni. The firm’s Japanese stocks strategy fund has outperformed 98% of its peers this year.
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