The essence of Hibiki’s investment approach is eloquently captured in the below poem written by Rikyu Sen, a 16 th century Japanese Haiku poet. We question conventional wisdom; we embrace the ignored and unloved; we embrace the unpopular; we scour for the lost and forgotten.

The mountain of flowers in full bloom
The crown jewel of which is to be approached
Not through the path trodden by the mass
But through a hidden path in oblivion

We invest in companies that are under appreciated by the market regardless of the current state of business fundamentals. Certain companies running strong businesses still see their stocks orphaned because the management is not focused on maintaining a proper valuation through IR engagement. Some companies are even trying to actively depress the share price for different reasons. With the value discipline as the backbone of our investment philosophy, we aim to capture all the potential upside without having to pay for it. Our clients benefit when stock prices appreciate but we also urge companies to issue stock-based compensation to employees and board members alike so that they themselves benefit from their efforts to revitalize the company. This would better align incentives within the company and the potential wealth creation would nurture greater loyalty from employees. Three pillars of Hibiki’s Investment Philosophy are shown below