Capital Allocators – Inside the Institutional Investment Industry David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
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Feb 8, 2021 
David Baran and Kazuhiko Shibata, co-founders of Symphony Financial Partners, dive into Japan’s investment landscape. They discuss the unique challenge of valuing companies in a culture where employees often take precedence over shareholders. Hear insights on their investment strategy, focusing on management engagement to unlock value. They illuminate Japan's corporate governance evolution and share compelling stories from their careers. Plus, they highlight intriguing value opportunities, like a company producing temporary shelters, and reflect on personal wellness routines.
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David Baran's Arrival and the Bubble Economy
- David Baran moved to Japan in 1981 due to his father's work, transitioning from a film major to a career in finance.
- He witnessed Japan's bubble economy, noting the excessive borrowing and eventual market crash.
Government Intervention and Price Insensitivity
- When Japanese pension funds started failing, the government absorbed the liabilities.
- However, the government only took cash, eliminating price sensitivity in the market.
Kazuhiko Shibata's Background and Cultural Differences
- Kazuhiko Shibata joined Nomura Securities in 1982, later attending Harvard Law School.
- He was surprised to learn that in the U.S. companies belonged to shareholders but in Japan, companies belonged to employees.