Atsuto Sawakami showed he had a contrarian streak in 1999, when he founded Japan’s first mutual fund shop with no ties to a major institution. Now he has broken with the crowd once again, and his clients have ample cause to rejoice. Sawakami, 54, eked out a 9 percent gain in the 12 months through early March , in contrast to the Nikkei’s 36 percent plunge - by staying largely in cash and what he calls “failed” old-Japan companies that are restructuring, such as Nippon Steel and Ishikawajima-Harima Heavy Industries.
Thus, even as other Japanese stock funds have suffered redemptions, Sawakami Asset Management has been grossing new business, with assets topping ¥11.5 billion ($96 million) last month. Still, with no up-front commission and a razor-thin 1 percent management fee, Sawakami needs ¥28 billion in assets to break even.
Formerly a Tokyo representative for the Swiss private bank Pictet, Sawakami does not advertise his firm. But if his latest big bet, on depressed high-tech names like Fujitsu and NEC, pays off, he could attract a slew of new assets. In the meantime, he plans to continue serving wine and snacks to clients who drop by. “Since I’m too busy to play golf, sharing a drink with customers is my one form of relaxation,” he says.
