Merryn Talks Money How to Find—and Force—Value From Tokyo to Seoul
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Oct 13, 2025 Joe Bauernfreund, CEO of Asset Value Investors, shares insights on activist investing and unlocking hidden value. He discusses Japan's corporate governance shift, highlighting how companies are now more shareholder-focused. Joe also delves into Mitsubishi Logistics and News Corp, exploring potential catalysts for value realization. He emphasizes opportunities in South Korea, where regulatory reforms are paving the way for better governance. Engaging trust boards and revitalizing the UK investment sector are other key topics, showcasing AVI's unique approach to overlooked assets.
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Buy Neglected Assets And Force Catalysts
- AVI targets undervalued, overlooked companies where price discovery fails, often buying assets below liquidation value.
- They actively engage as shareholders to create catalysts rather than just wait for markets to reprice.
Japan's Governance Shift Unlocked Value
- Japan historically hoarded cash and ignored shareholders, creating deep discounts in many companies.
- Corporate governance reforms under Abe shifted psychology, making firms focus more on capital efficiency and share price.
PE Pressure Complements Activists
- Private equity's rise in Japan created a credible takeover threat that, with activists, pressures managements to close discounts.
- The dual presence of activists and PE accelerates corporate-control activity and rerating.