Capital Allocators – Inside the Institutional Investment Industry Howard Smith – Japanese Equities at Indus Capital (Manager Meetings, EP.35)
Aug 18, 2022
Howard Smith, Partner and Portfolio Manager at Indus Capital, shares his unique journey from a rural UK village to the heart of Japan's investment scene. He discusses the intricacies of Japanese corporate governance and the vital role of Japanese firms in semiconductor production. Howard highlights the importance of personal relationships and thorough analysis in investment strategies, while also reflecting on the transforming landscape of Japan's equity market since the Corporate Governance Code. His passion for nature and personal growth shapes his distinctive investment philosophy.
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Relocation for Global Perspective
- Smith moved to San Francisco to gain a global perspective and closer collaboration with Indus' North America team.
- He prioritized deep company insights over short-term market trends, finding better access to senior management outside Japan.
Global-Local Investment Model
- Indus Capital's model combines on-the-ground research in Asia with portfolio managers based in North America.
- This structure provides a global perspective while maintaining strong local connections and language skills.
Internal Collaboration
- Indus fosters collaboration through written work, regular meetings, and a process called "pasta" to develop investment theses.
- Analysts are incentivized to share ideas across multiple funds, promoting cross-fertilization.