Gerard Cawley and Chris Smith, Managers of the Polar Capital Japan Value Fund, share their outlook and explain why, despite political headlines dominating in the short term, they believe corporate reform remains the long-term driver of Japanese equity performance.
They discuss the ongoing momentum around capital efficiency, share buybacks and governance improvements, and explore further changes expected in 2026. Against this backdrop, they argue that small caps continue to offer the most attractive risk-reward, underpinned by compelling valuations, business quality, and the potential for more efficient use of excess capital.
Gerard Cawley and Chris Smith, Managers of the Polar Capital Japan Value Fund, share their outlook and explain why, despite political headlines dominating in the short term, they believe corporate reform remains the long-term driver of Japanese equity performance.
They discuss the ongoing momentum around capital efficiency, share buybacks and governance improvements, and explore further changes expected in 2026. Against this backdrop, they argue that small caps continue to offer the most attractive risk-reward, underpinned by compelling valuations, business quality, and the potential for more efficient use of excess capital.
Gerard joined Polar Capital in January 2005 and is Head of the Polar Capital Japan Team.
He has been manager of the Polar Capital Japan Value Fund, formerly Japan Alpha Fund, since its launch in 2012.
Prior to joining Polar Capital, Gerard worked in the Japanese equity team at Schroder Investment Management.
Chris Smith, CFA
Chris Smith is co-manager of the Japan Value Fund. He joined Polar Capital in January 2012 as a Japanese equity analyst, prior to which he gained five years’ experience working in accountancy.
He holds a BSc (1st Class Hons) in applied accounting and is a chartered accountant and a CFA charter holder.
