Now setting up a private equity firm focused on Japan and Hong Kong, Chiba is definitely not chasing the herd.
The 37-year-old former Rhodes scholar will depart UBS at the end of July and launch his new firm, Longreach Group, in September. But why Japan and Hong Kong? Japan’s market collapsed in 1989, and Hong Kong’s never fully regained its footing after the Asian financial crisis.
Japan, Chiba explains, is at the “beginning of the endgame” that will eventually result in a more market-driven economy. And hundreds of listed companies there are selling below book value, offering lots of opportunities.
Similarly, he disagrees with skeptics who say that Hong Kong is losing its status as the gateway to China. “Hong Kong can accommodate the relative rise of other cities in China and find a complementary role,” he says. “When you take a long-term view of Hong Kong, you have to be very positive.”
From its Tokyo and Hong Kong offices, Longreach will seek investments in financial services, industrial technology and consumer companies -- “nothing scary or exotic,” says Chiba.
“Whatever the speed bumps along the road, whether it’s North Korea or SARS, if you are prepared to hang in there, it’s a region that offers the biggest growth story in the world,” he says confidently. “Negative sentiment has led to overselling and neglect. It’s a good time to get set now.”
