Hedge Funds

Why Warren Buffett’s Japan bet may lure foreigners as US markets ‘divorced from reality’

Patrick Ghali's views come in the wake of Warren Buffett's recent bets in the country and as the nation chooses a new prime minister

Yoshihide Suga, third from left, is almost certain to become Japan's new Prime Minister after being elected the new head of the ruling Liberal Democratic Party on 14 September. He is pictured alongside (L-R) Japan's former foreign minister Fumio Kishida, outgoing Prime Minister Shinzo Abe, and (R) former defence minister Shigeru Ishiba
Yoshihide Suga, third from left, is almost certain to become Japan's new Prime Minister after being elected the new head of the ruling Liberal Democratic Party on 14 September. He is pictured alongside (L-R) Japan's former foreign minister Fumio Kishida, outgoing Prime Minister Shinzo Abe, and (R) former defence minister Shigeru Ishiba Photo: Getty Images

Japan — long an investment managers’ graveyard — has become one of the most fertile markets for hedge fund managers in 2020 — and it is no surprise to see Warren Buffett placing a big bet on the country.

That’s the view of Patrick Ghali, co-founder of hedge fund consultancy Sussex Partners — a London based firm that advises large investors on allocating to hedge funds. And he says he is not telling them to pull in their Japan bets any time soon.

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