Seth Fischer, the founder and CIO of Oasis Capital Management, was recently interviewed in Barron’s and discussed some of his fund’s current investments in Japan. The interview comes shortly after the 2017 Sohn Conference Hong Kong, where Fischer had pitched Sony (see here for more).
Some highlights below:
- On Nintendo: Bought shares five years ago as he saw potential for the company to further monetise its library of games by introducing smartphone versions of popular titles. He still sees further upside and remains long on the stock. Sales of the Switch console will be a key driver.
- On Cyberdyne: Presented his original short thesis for the company at the 2016 Sohn Conference and the share price has fallen ~40% since then. Fischer still thinks it’s overvalued, especially given that the company doesn’t have an FDA license and potential market size is very small.
- On Sony: Sees ~40% upside given growth and quality of the business. The music division is at an inflection point and he sees potential for the company to grow its gaming business, especially in e-sports. Shares are trading at just under 17x forward earnings.
- He is also finding opportunities in other markets, including South Korea and Singapore. Both markets are attractively valued and have cash-rich companies that could be better managed. Has identified targets in both and is working with the companies privately.