At Cadira Capital Management, we believe that while macro-level developments such as politics and trade can influence market dynamics, their unpredictability makes them an unreliable basis for forming high-conviction investment views. Instead, we remain focused on a bottom-up approach—evaluating companies one by one—while keeping a close eye on the broader environment.
Recent events illustrate why. Japan’s Upper House election on July 20 resulted in heavy losses for the ruling LDP–Komeito coalition, stripping it of a majority in both chambers. Although largely anticipated by markets, the outcome has heightened political uncertainty, with Prime Minister Ishiba facing internal criticism.
There were, however, notable shifts. The election of 42 women (33.6% of winners, up from 28.0% in 2022) marked progress in addressing Japan’s gender gap in politics. Meanwhile, the Sanseito party surged from one to 15 seats, riding a wave of anti-globalist and populist sentiment fueled by concerns over inflation and inequality. On the international front, a new Japan–U.S. trade agreement reached on July 23 delivered a market surprise: tariffs were capped at 15%, lower than the 25% level that had been feared, sparking a 3% rally in equities. Even so, diverging interpretations between the two governments signal that volatility is far from over.
Against this backdrop, our attention is on structural trends where company fundamentals drive long-term value creation. One area of focus is battery storage, where falling unit costs and technological progress are expanding applications. Opportunities span grid storage, data center backup, and the fast-growing two-wheeler market, even as EV demand moderates. We are conducting research not only on battery cell manufacturers but also on materials suppliers, system integrators, and end-use businesses that stand to benefit.
By anchoring our strategy in bottom-up analysis, we aim to identify resilient investment opportunities that endure beyond the headlines.
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Important Notice
The content of this website has been prepared by Cadira Capital Management Co., Ltd. (“CCM”) for informational purposes only to professional investors who are expected to make their own investment decisions without undue reliance on such content. The views and strategies described may not be suitable for all investors. Under no circumstances is it to be used or considered as legal or investment advice, a recommendation to buy, an offer to sell, or a solicitation of an offer to buy or sell securities and investors should be advised to consult their own stockbroker, accountant, solicitor, independent financial adviser, or other professional adviser for advice. We accept no liability whatsoever for any direct or consequential loss arising from any use of this content. The information is intended solely to report on investment strategies and opportunities identified by CCM. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. CCM and its affiliates do not warrant the accuracy or completeness of any of the information or data contained herein. References to specific securities and their issuers are for illustrative purpose only and are not intended to be, and should not be interpreted as investment advice or, a recommendation, offer or solicitation for the purpose or sale of any financial investment. This content does not constitute tax advice and as such investors should be advised to consult their own tax advisers regarding the tax consequences of their investment activities. Investment return and principal will fluctuate, so that a client's initial investment may increase or decrease. Investing in securities markets involve risks like those arising from stock and bond markets, currency exchanges rate and interest rate volatility. No part of this content may, without CCM prior written consent, be copied, reproduced, or published by any recipient for any purpose. Past performance is not indicative of future performance.
