Since 1988, JAPONICA PARTNERS has built our track record by creating transformational investments with low risk high return. Our culture is to see what others do not see and to use “education-education-education” to accomplish what others believe is impossible.
Japonica’s investment track record is the result of a highly selective number of transformational investment efforts: Greek government bonds (GGBs), Sunbeam-Oster Company, CNW Corp, Allegheny International, and withdrawing the Borden restructuring proposal.
Japonica’s transformational investments have three building blocks: discover systemic misconceptions, discover a massive undervaluation, and create extraordinary value.
Japonica builds customized superstructure teams for each transformational investment that:
– Discover systemic misconceptions rooted in financial statements (especially balance sheets), which do not reflect economic reality
– Discover a massive undervaluation, which starts with building detailed consolidated and segment financial statements
– Create extraordinary value by optimizing these discoveries, often through informal and formal education, with the balance sheet as the primary financial performance measurement tool
For internal management purposes, Japonica measures its investment track record according to the best practice Global Investment Performance Standards (GIPS). Japonica’s average return multiple is 4.6x with a 94% IRR and initial estimated downside return of 1.9x.
To date, Japonica has extensively educated through multiple and lengthy sessions the senior-most leadership of 12 of the largest 14 sovereign wealth funds in the world, who collectively had assets under management of $8.0 trillion with an approximate $4.0 trillion in fixed income.
Through our relentless education, we have changed views of senior most leadership of major international stakeholders, including prime ministries, finance ministries, parliaments throughout Europe and Asia, IMF, IIF, ECB, OECD, UN, World Bank, CDU, EWG, ESM, Paris Club, US SEC, IFAC, CIPFA, AHCC, CESifo, CEPS, ICAEW, BHCC, and credit rating agencies.
In the early 1980s, Japonica’s founder, while in the corporate finance department at Goldman, Sachs & Co, created a powerfully insightful family of financial performance indicators called Value Created/Destroyed (VCD) using stock and flow financial statement numbers. VCD financial performance indicators were first used by our founder to brief Goldman’s management committee on the firm’s most challenging corporate and government capital commitment situations. VCD indicators have been at the heart of all Japonica’s transformational investments. The public sector derivative of VCD, Citizens’ Wealth, provides significantly better historical and comparative insights into sovereign government financial performance.
Japonica Partners philanthropic affiliate, The Charles & Agnes Kazarian Foundation, is named after our founder’s grandparents who were survivors of the Armenian genocide and has a core competency to improve public financial management (PFM) and financial literacy. The Kazarian Foundation is funded solely by affiliates of Japonica Partners and had spending since founding plus year-end 2018 assets of over one quarter-billion US dollars.
Japonica is not a fund and does not provide investment advice.