On the 8th, a Hong Kong investment fund known as a so-called "activist" group that actively urges Japanese companies to reform their business management held a press conference in Tokyo and urged Kao, a major consumer goods company, to focus on growth in its major cosmetics business. We called for further reforms, including the
Hong Kong investment fund Oasis Management holds more than 3% of Kao's shares, and Chief Investment Officer Seth Fisher held a press conference on the 8th.
The investment fund is asking Kao to reduce the number of unprofitable brands, focus on growth in core cosmetics and other products, and appoint outside directors with marketing experience.
Chief Investment Officer Fischer pointed out, ``Kao has great brands, but they are not realizing their potential.We can grow significantly by concentrating our resources on the best products and brands,'' and called for further reforms.
Foreign investors have been increasing their presence by driving the recent rise in Japan's stock prices, but it is unusual for investment fund executives, known as activists, to hold a press conference to explain their investment policies.
In response to the investment fund's claims, Kao said on the 4th of this month, ``Unfortunately, the structural reforms we have proposed are not fully understood.In our medium-term management plan, we are pursuing global growth by investing in our core brands.'' I am commenting on this.