The Albany Gazette - Horizon Kinetics Launches Japan Owner Operator Exchange-Traded Fund (Ticker: JAPN)

JAPN will be managed in accordance with the long-term, value-oriented, proprietary research-driven philosophy that has defined Horizon's other products for over 30 years. The ETF invests in Japanese companies-specifically, firms operated by individuals who have significant ownership positions in their companies.

JAPN aims to provide long-term capital appreciation by investing in the owner-operators who also have a high degree of management skills, specific industry knowledge, deep networks, and a strong commitment to long-term growth. This owner-operator factor is just about the only demonstrated, persistent way to solve the much-studied, never-cured agency and incentive alignment problem in public equities.

For those looking to get genuinely Japanese exposure, JAPN offers a way to invest alongside Japanese owner-operators, an entirely distinct return factor that can add functional-not merely semantic-diversification to a conventionally structured portfolio. The portfolio companies primarily do business in Japan, unlike the more global export-oriented firms that comprise popular Japan indexes, which are not really Japanese exposures.

"There is a recent development in Japan that the media in America has not picked up on: Japanese owner-entrepreneurs are emerging to break the rigid boundaries of their cultural norms," says Murray Stahl, the Founder, CEO, and Chief Investment Officer at Horizon Kinetics-and one of JAPN's three portfolio managers, along with colleagues Aya Weissman and Utako Kojima. "This group is naturally incentivized to deliver a high return on equity, which can often have predictive potential for superior shareholder return."

"In every market, there are swathes of inefficiency," says Weissman. "Sometimes it is information- and analysis-based. Often it is the liquidity divide between large multinationals and firms of insufficient size to interest indexation and large-scale investors. There are almost 4,000 listed companies in Japan, and only the smallest fraction-primarily multinationals-make it to the major indexes; this is the thumbnail picture of the Japan-top-heaviness conundrum. We see a significant investment opportunity under the hood."

"We have been closely following value investment opportunities in Japan for more than two decades," adds Kojima. "One of the problems in Japan is that companies are too conservative with their balance sheet assets, meaning they have too much cash-and not enough new product development, new investment activity, or capital investment, at least not enough to make the economy grow as the policy makers feel it should. But we have identified some notable exceptions."

For more information about JAPN, please visit https://horizonkinetics.com/products/etf/japn/

About Horizon Kinetics LLC

Horizon Kinetics LLC is the parent holding company of one SEC-registered investment advisory subsidiary (Horizon Kinetics Asset Management LLC) and two limited-purpose broker dealers (Kinetics Funds Distributor, LLC and KBD Securities, LLC, which are SEC-registered and members of FINRA). Horizon Kinetics LLC is a wholly owned subsidiary of an OTC Pink-listed parent company, Horizon Kinetics Holding Corporation (Ticker: HKHC).

Horizon Kinetics is an owner-operated investment boutique that adheres to a research-driven, long-term, contrarian, fundamental value investment philosophy that the founders established more than 30 years ago at Bankers Trust Company. Horizon Kinetics has over 80 employees and has primary offices in New York City and White Plains, New York. For more information about Horizon Kinetics, visit www.horizonkinetics.com

Please consider carefully a fund's investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory prospectus and summary prospectus by contacting 646-495-7333. Read it carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund's investments in securities linked to real assets involve significant risks, including financial, operating, and competitive risks. Investments in securities linked to real assets expose the Fund to potentially adverse macroeconomic conditions, such as a rise in interest rates or a downturn in the economy in which the asset is located.

The Fund is non‐diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.

Risks Related to Investing in Japan. Japan's economy has historically lagged that of its Asian neighbors and other major developed economies due in part of to economic, political and social conditions. Japan's economic growth is heavily dependent on international trade, government support of the financial services sector and other troubled sectors, as well as governmental policy supporting its export market. However, slowdowns in the economies of key trading partners, such as the U.S. and China, leading to decreased demand from these countries, new trade regulations, and changes in exchange rates may also have an adverse impact on the economy of Japan.

Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.

The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets.

The Fund may invest in the securities of smaller and mid‐capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The fund is actively managed and may be affected by the investment adviser's security selections.

Diversification does not assure a profit or protect against a loss in a declining market.

HKAM does not provide tax or legal advice, all investors are encouraged to consult their tax and legal advisors regarding an investment in the Fund. You may obtain additional information about HKAM at our website at www.horizonkinetics.com.

No part of this material may be copied, photocopied, or duplicated in any form, by any means, or redistributed without the express written consent of HKAM.

The Horizon Kinetics Japan Owner Operator ETF (JAPN) is distributed by Foreside Fund Services, LLC ("Foreside"). Foreside is not affiliated with JAPN or Horizon Kinetics LLC or its subsidiaries.

SOURCE: Horizon Kinetics Japan Owner Operator ETF

View the original press release on ACCESS Newswire

(O.Garcia--TAG)