The burgeoning economy in Japan is leading to more U.S.-type hedge fund strategies to take hold, according to Bloomberg News. While long/short equity still by far is the No. 1 choice of most investors (close to 40%), other strategies are beginning to emerge. "Deal flow is the biggest driver and the event-driven type of funds can profit from growing corporate activity," Michio Jibiki of Astmax Co. told Bloomberg News. All the merger and acquisition and restructuring activity has had a salutary effect on the industry, which until now has for the most part thrown all its assets into only a couple of strategies. "We’re beginning to see strategies that are very common in the U.S.," Julius Wang of Tokyo-based Vision Investment Management said in an interview. The Japanese economy has been on a tear for more than four years now, and that’s attracting foreign buyers to cash-rich companies. The opportunities are certainly there. An estimated 25% of the 3,000-plus listed companies are ripe for restructuring, in a culture that values stability and asset growth at least as much as profits. At the moment, James Fiorillo of Tokyo-based Ottoman Capital explained to Bloomberg News, construction, retail and real estate industries are the darlings because of their high levels of debt and on-performing assets. "There’s a lot of activity with troubled companies," said Fiorillo. "Some will succeed, some will fail. Stock prices react to that and that’s how we make money."